Allowance method entries The following transactions werecompleted by Wild Trout Gallery during the current fiscal yearended December 31: Jan. 19. Reinstated the account of ArleneGurley, which had been written off in the preceding year asuncollectible. Journalized the receipt of $2,015 cash in fullpayment of Arlene’s account. Apr. 3. Wrote off the $11,550 balanceowed by Premier GS Co., which is bankrupt. July 16. Received 35% ofthe $20,700 balance owed by Hayden Co., a bankrupt business, andwrote off the remainder as uncollectible. Nov. 23. Reinstated theaccount of Harry Carr, which had been written off two years earlieras uncollectible. Recorded the receipt of $3,285 cash in fullpayment. Dec. 31. Wrote off the following accounts as uncollectible(compound entry): Cavey Co., $8,685 ; Fogle Co., $2,580 ; LakeFurniture, $ 6,630 ; Melinda Shryer, $1,875. Dec. 31. Based on ananalysis of the $1,021,200 of accounts receivable, it was estimatedthat $44,400 will be uncollectible. Journalized the adjustingentry. Required: 1. Record the January 1 credit balance of $42,300in a T account presented below in requirement 2b for Allowance forDoubtful Accounts. 2. a. Journalize the transactions. If an amountbox does not require an entry, leave it blank. Note: For theDecember 31 adjusting entry, assume the $1,021,200 balance inaccounts receivable reflects the adjustments made during theyear.

2b is just a picture showing the T account.