following transactions were completed by Irvine Company during the current fiscal year ended December 31 : Feb. 8 Received 40% of the $18,000 balance owed by DeCoy Co., a banksupt business, and wrote off the remainder as uncollectible. May 27 Reinstated the account of Seth Nelsen, which had been written off in the preceding year as uncollectible. Journalized the receipt of 57,350 cash in full payment of Seth's account: Aug. 13 Wrote off the $6,400 balance owed by Kat Tracks C0, which has no assets, Oct. 31 Reinstated the account of Crawford CO. which had been written off in the preceding year as uncollectible. Journalzed the receipt of $3,880 cash in full payment of the account. Dec. 31 Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., 57, 190; Bonneville: Co., $5,500, Crow Distributors, $9,400, Fiber Optics, $1,110 Dec 31 Based on an analysis of the $1,785,000 of accounts receivable, it was estimated that $35,700 will be uncollectible. Journalized the adjusting entry. Required: 1. Record the January 1 credi balance of $26,000 in a T-account for Allowance for Doubtfut Accounts: 2. a Joumalize the transactions: b. Post each entry that affects the following selected T-accounts and defermine the new balances. Allowance for Dowbtrul Accounts and Bad Debt Expense 3. Determine the expected net realizable value of the accounts recoivable as of December 31 4. Assuming that instesd of basing the provision for uncollectibie accounts on an analysis or cecelvabies, the adjusting entry on December 31 had been based on an estimated expense of % of t% of the sales of $18,200,000 for the year, defermine the following a. Eaddebt expense for the year. b. Balance in the aliowance account after the aqjustment or December 31 . c. Expected net reanzable watue of the accounts recenable as of December 31 . Chart of Accounts CHART OF ACCOUNTS Irvine Company General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable-DeCoy Co. 122 Accounts Receivable-Seth Nelsen 123 Accounts Receivable-Kat Tracks Co. 510 Cost of Goods Sold 124AccountsReceivable-CrawfordCo.125AccountsReceivable-NewbauerCo.520SalesSalariesExpense521AdvertisingExpense 126 Accounts Receivable-Bonneville Co. 522 Depreciation Expense-Store Equipment 127 Accounts Receivable-Crow Distributors 523 Delivery Expense 128 Accounts Receivable-Fiber Optics 524 Repairs Expense 129 Allowance for Doubtful Accounts 529 Selling Expenses 131 Interest Receivable 530 Office Salaries Expense 132 Notes Receivable 531 Rent Expense 141 Merchandise Inventory 532 Depreciation Expense-Office Equipment 145 office Supplies 533 Insurance Expense 146 Store Supplies 534 Office Supplies Expense 151 Prepaid Insurance 535 Store Supplies Expense 181 Land 536 Credit Card Expense art of Accounts 131InterestReceivable132NotesReceivable141MerchandiseInventory145OfficeSupplies146StoreSupplies151PrepaidInsurance181Land191StoreEquipment192AccumulatedDepreciation-StoreEquipment193OfficeEquipment194AccumulatedDepreciation-OfficeEquipment530OfficeSalariesExpense531RentExpense532DepreciationExpense-OfficeEquipment533InsuranceExpense534OfficeSuppliesExpense535StoreSuppliesExpense536CreditCardExpense537CashShortandOver538BadDebtExpense539MiscellaneousExpense710InterestExpense LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 1. Record the January 1 credit balance of $26,000 in a T-account for Allowance for Dowbiful Accounts. 2b. Post each entry that affects the following selected T-accounts and determine the new balances: Allowance for Doubiful Accounts and 1. Record the January 1 credit balance of $26,000 in a T-account for Allowance for Doubtful Ac 2b. Post each entry that affects the following selected T-accounts and determine the new balanc Allowance for Apr. 11 Aug. 13 Oct. 31 Bad Debt Expense 1. Record the January 1 credit balance of $26,000 in a T-account for 2b. Post each entry that affects the following selected T-accounts and Allowance f Dec. 31 Unadjusted Balance Bad Debt Expense Dec. 31 Adjusting Entry a Bad Debt Expense Nov. 20 Dec. 31 Adjusting Entry July 6 a T-account for Allowance for Doubtful Accounts. T-accounts and determine the new balances: Allowance for Doubtful Accounts and a T-account for Allowance for Doubtful Accounts. T-accounts and determine the new balances: Allowance for Doubtful Accounts and -account for Allowance for Doubtful Accounts. ccounts and determine the new balances: Allowance for Doubtful Accounts and 2a. Journalize the transactions General Journal - Dagenterstise ter the vear
