The following transactions occurred for Gullible Co. during the current year ended December 31. June 6:...

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The following transactions occurred for Gullible Co. during the current year ended December 31. June 6: Reinstated the account of Ira Tate, which had been written off in the preceding year as uncollectible. Gullible received the full $1,945 cash that was owed on Ira's account. July 19: Wrote off the $11,150 balance owed by Contract Rigging Co, which is now bankrupt. Aug 13: Received 35% of the $20,000 balance owed by Oops Co., a bankrupt business, and wrote off the remainder as uncollectible. Sept 2: Reinstated the account of Ima N. Dinero, which had been written off two years earlier as uncollectible. Gullible received the full $3,170 cash that was owed on Ima's account. Dec. 30: Wrote off $19,090 for receivable balances that were determined to be uncollectible. Dec. 31: Based on analysis of the aging schedule for the $960,750 of Accounts Receivable, it was estimated that $42,000 will be uncollectible. Use the T-Account to help determine the adjustment amount and then record the necessary entry. Required: A. Prepare a T-account for Allowance for Doubtful Accounts and enter a June 1 CREDIT balance of $40,000. B. Jourmalize the above transactions and post amounts affecting the Allowance for Doubtful Accounts to the T-account. The T-account will help determine the adjustment needed for Dec 31. C. Determine the expected Net Realizable Value of Accounts Receivable as of December 31. The A/R balance is given on December 31 as $960,750. D. Go back to Dec. 31 and assume you had not made that adjustment yet. Instead of basing the adjustment on an analysis of the aging schedule for Accounts Receivables: 1. Prepare an adjusting journal entry based on an estimated expense of 1% of sales. Credit sales were $4,400,000 for the year. 2. Determine the balance in the Allowance for Doubtful Accounts after adjustment using this new information. 3. Determine the Net Realizable Value of Accounts Receivable as of December 31 based on this new adjustment. The following transactions occurred for Gullible Co. during the current year ended December 31. June 6: Reinstated the account of Ira Tate, which had been written off in the preceding year as uncollectible. Gullible received the full $1,945 cash that was owed on Ira's account. July 19: Wrote off the $11,150 balance owed by Contract Rigging Co, which is now bankrupt. Aug 13: Received 35% of the $20,000 balance owed by Oops Co., a bankrupt business, and wrote off the remainder as uncollectible. Sept 2: Reinstated the account of Ima N. Dinero, which had been written off two years earlier as uncollectible. Gullible received the full $3,170 cash that was owed on Ima's account. Dec. 30: Wrote off $19,090 for receivable balances that were determined to be uncollectible. Dec. 31: Based on analysis of the aging schedule for the $960,750 of Accounts Receivable, it was estimated that $42,000 will be uncollectible. Use the T-Account to help determine the adjustment amount and then record the necessary entry. Required: A. Prepare a T-account for Allowance for Doubtful Accounts and enter a June 1 CREDIT balance of $40,000. B. Jourmalize the above transactions and post amounts affecting the Allowance for Doubtful Accounts to the T-account. The T-account will help determine the adjustment needed for Dec 31. C. Determine the expected Net Realizable Value of Accounts Receivable as of December 31. The A/R balance is given on December 31 as $960,750. D. Go back to Dec. 31 and assume you had not made that adjustment yet. Instead of basing the adjustment on an analysis of the aging schedule for Accounts Receivables: 1. Prepare an adjusting journal entry based on an estimated expense of 1% of sales. Credit sales were $4,400,000 for the year. 2. Determine the balance in the Allowance for Doubtful Accounts after adjustment using this new information. 3. Determine the Net Realizable Value of Accounts Receivable as of December 31 based on this new adjustment.

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