Instructions The following transactions were completed by Irvine Company during the current fiscal year ended December 31: Feb. 8 May 27 Aug 13 Oct 31 Received 40% of the $17,000 balance owed by Decoy Co., a bankrupt business, and wrote off the remainder as uncollectible Reinstated the account of Seth Nelsen, which had been written off in the preceding year as uncollectible Journalized the receipt of $7,405 cash in full payment of Seth's account Wrote off the $6,460 balance owed by Kat Tracks Co.which has no assets. Reinstated the account of Crawford Co., which had been written off in the preceding year as uncollectible. Journalized the receipt of $3,940 cash in full payment of the account. Wrote off the following accounts as uncollectible (compound entry). Newbauer Co. $7,095, Bonneville CO., S5,540. Crow Distributors, 89,495; Fiber Optics, $1,035 Based on an analysis of the S1,782,000 of accounts receivable, it was estimated that 35,640 will be uncollectible, Journalized the adjusting entry Dec 31 Dec 31 1. Record the January 1 credit balance of $25,615 in a T-account for Allowance for Doubtful Accounts. 2. A Journalize the transactions Refer to the Chart of Accounts for exact wording of account titles B. Post each entry that affects the following selected T-accounts and determine the new balances Allowance for Doubtrur Accounts and Bac Debr Expenso 3. Determine the expected net reakable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting en A Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables, the adjusting entry on December 31 been based on an estimated expense of % of 1% of the net sales of $17,760,000 for the year, determine the following A Beddent expense for the year B Balance in the allowance account after the adjustment of December 31 C Expected not realizable value or the accounts recewable as of December 31 CheckM Wack T-Accounts Allowance for Doubtful Accounts Feb. 8 Jan. 1 Balance Aug. 13 May 27 Dec. 31 Oct. 31 7 Dec. 31 Adjusting Entry Dec. 31 Unadjusted Balance Dec. 31 Adj. Balance Bad Debt Expense Dec. 31 Adjusting Entry Record the Vanuary 1 credit balance of $25,615 na T-account for Allowance for Doubtful Accounts. 2. A Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Journal DATE DESCRIPTION POST. RIF DET CREDIT ASSETS LIELITIES EQUITY 2 3 4 5 7 10 11 10 12 21 sto - 14 ins hind 16 ba 33 add us son 15 pod 20 Final Questions 3. Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry) 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 % of 1% of the net sales of $17,760,000 for the year, determine the following A Bad debt expense for the years B. Balance in the allowance account after the adjustment of December 31. $! C Expected net realizable value of the accounts receivable as of December 31 S CO
