The following transactions, adjusting entries, and closing entries were completed by Elko Contractors Co. during the year

Question:

The following transactions, adjusting entries, and closing entries were completed by Elko Contractors Co. during the year ended December 31, 2006:
Mar. 15. Received 60% of the $18,500 balance owed by Bimba Co., a bankrupt business, and wrote off the remainder as uncollectible.
Apr. 16. Reinstated the account of Tom Miner, which had been written off in the preceding year as uncollectible. Journalized the receipt of $5,782 cash in full payment of Miner’s account.
July 20. Wrote off the $5,500 balance owed by Martz Co., which has no assets.
Oct. 31. Reinstated the account of Two Bit Saloon Co., which had been written off in the preceding year as uncollectible. Journalized the receipt of $6,100 cash in full payment of the account.
Dec. 31. Wrote off the following accounts as uncollectible (compound entry): Asche Co., $950; Dorsch Co., $4,600; Krebs Distributors, $2,500; J. J. Levi, $1,200.
31. Based on an analysis of the $535,750 of it was estimated that $13,700 will be uncollectible. Journalized the adjusting entry.
31. Journalized the entry to close the appropriate account to Income Summary.

Instructions
1. Post the January 1 credit balance of $12,050 to Allowance for Doubtful Accounts.
2. Journalize the transactions and the adjusting and closing entries. Post each entry that affects the following three selected accounts and determine the new balances:
115 ..... Allowance for Doubtful Accounts
313 ..... Income Summary
718 ..... Uncollectible Accounts Expense
3. Determine the expected net realizable value of the as of December 31.
4. Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables, the adjusting entry on December 31 had been based on an estimated expense of 1/2 of 1% of the net sales of $3,100,000 for the year, determine the following:
a. Uncollectible accounts expense for the year.
b. Balance in the allowance account after the adjustment of December 31.
c. Expected net realizable value of the as of December 31.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...