Reference no: EM132793725

Emery Nurseries used the allowance method to record the following selected transactions, adjusting entries, and closing entries during the year ended December 31, 20--.

1. Feb. 9 Received 60% of the $5,000 balance owed by Patty's Petunias Co., a bankrupt business. Wrote off the remaining balance as uncollectable.
2. May 28 Reinstated the account of Daniel Bell, which had been written off during the preceding year. Received $2,400 cash in full settlement of his account.
3. Aug. 16 Wrote off the $8,200 account balance owed by Rich Brown as uncollectable.
4. Oct. 15 Received a check for $2,500 from Bonnie McClellan as payment on her account. Bonnie's account with a balance of $3,250 was written off during the preceding year. Emery does not believe that the remaining balance is collectable.
5. Nov. 10 Received payment on account from the following customers: Baker and Associates, $1,347.45; Pat's Gardening, $5,987.00; Curt's Greenhouse, $896.87 and Newk's Fine Landscaping, $556.89
6. Dec. 28 Wrote off the following accounts as uncollectible: Bloudeck & Rhodes, $14,345; Creative Landscapers, $5,789; Simon's seeds, $1,098.56.
7. Dec. 31 Based on an analysis of accounts receivable, it was determined that Total Accounts receivable had a balance of $980,000 and that it was estimated that 5.2% would be uncollectible. The current balance in the allowance for Doubtful Accounts before adjustment was $44,567.

Required:

Problem 1. Record each of the above selected transactions in general journal form.

Problem 2. Compute the Net Realizable Value of Accounts Receivable as of December 31.