Answer:
The year-end adjusting entries for the uncollectible accounts will be:
April 13:
Debit Allowance for doubtful accounts             $6,530
Credit Accounts receivable                                $6,530
<em>(To record write-off of accounts receivable - Dean Sheppard)</em>
May 15:
Debit Cash                                                          $3,270
Credit Accounts receivable                               $3,270
<em>(To record collection on account - Dan Pyle)</em>
Debit Allowance for doubtful accounts            $5,410
Credit Accounts receivable                               $5,410
<em>(To record write-off of accounts receivable - Dan Pyle)</em>
July 27:
Debit Accounts receivable                                $6,530
Credit Allowance for doubtful accounts           $6,530
<em>(To re-establish accounts receivable from Dean Sheppard)</em>
Debit Cash                                                          $6,530
Credit Accounts receivable                               $6,530
<em>(To record collection on account - Dean Sheppard)</em>
December 31:
Debit Allowance for doubtful accounts           $13,330
Credit Accounts receivable                              $13,330
<em>(To record write-off of accounts receivable - Miscellaneous)</em>
Explanation:
- April 13: Shipway Company wrote-off account of Dean Sheppard, this means there would be a reduction in both allowance for doubtful accounts and accounts receivable.
- The receipt on May 15 of $3,270 reduced the accounts receivable but increased cash. However, the write-off of $5,410 caused a reduction in both the allowance account and accounts receivable.
- When there was a receipt of $6,530 on July 27, the accounts receivable would be reinstated and then adjusted for the cash receipt.
- Lastly, the write-off of the uncollectible accounts from miscellaneous customers were added up to arrive at $13,330.