Instructions The following transactions were completed by Irvine Company during the current fiscal year ended December 31: Feb. 8 May 27 Aug13 Oct 31 Received 30% of the $18,000 balance owed by Decoy Co, a bankrupt business, and wrote of the remainder as uncollectible. Reinstated the account of Seth Nelsen, which had been written off in the preceding year as uncollectible. Joumalized the receipt of $7,265 cash in tut payment of Seth's account Wrote off the $6,410 balance owed by Kat Tracks Co., which has no assets Reinstated the account of Crawford Co., which had been written off in the preceding your as uncollectible, Journalized the receipt of $3,980 cash in full payment of the account Wrote off the following accounts as uncollectible (compound entry): Newbauer Co. $7,090; Bonneville Co. 55,485; Crow Distributors, $9,415; Fiber Optics, $1,190. Based on an analysis of the $1.774,000 of accounts receivable, it was estimated that $35,480 will be uncollectible, Joumalized the adjusting entry Dec. 31 Dec. 31 1. Record the January 1 credit balance of $25,795 in a T-account for Allowance for Doubtful Accounts 2. A. Journalize the transactions. Refer to the Chart of Accounts for exact wording of accountities B. Posteach entry that affects the following selected T-accounts and determine the new balances: Allowance for Doubtful Accounts and Bad Debt Expense 3. Determine the expected not realizablo walue 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 4 of 1% of the net sales of $18,660,000 for the year, determine the following: A. Bad debt expense for the year. May 27 Reinstated the account of Seth Nelsen, which had been written off in the preceding year as uncollectible. Journalized the receipt of $7,265 cash in full payment of Seth's account. Aug. 13 Oct. 31 Dec. 31 Wrote off the $6,410 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 $3,980 cash in full payment of the account. Wrote of the following accounts as uncollectible (compound entry): Newbauer Co., 57,090; Bonneville Co., $5,485; Crow Distributors, $9,415; Fiber Optics, S1,190. Based on an analysis of the $1,774,000 of accounts receivable, it was estimated that $35,480 will be uncollectible. Journalized the adjusting entry Dec. 31 1. Record the January 1 credit balance of $25,795 in a T-account for Allowance for Doubtful Accounts. 2. A. Joumalize 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 Doubtful Accounts and Bad Debt Expense. 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 4 of 1% of the net sales of $18,660,000 for the year, determine the following: A. Bad debt expense for the year 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. Chart of Accounts CHART OF ACCOUNTS Irvine Company General Ledger ASSETS REVENUE 110 Cash 410 Sales 610 Interest Revenue 111 Petty Cash 121 Accounts Receivable-DeCoy Co. 122 Accounts Receivable-Seth Nelsen EXPENSES 123 Accounts Receivable-Kat Tracks Co. 510 Cost of Goods Sold 124 Accounts Receivable-Crawford Co. 125 Accounts Receivable-Newbauer Co. 126 Accounts Receivable-Bonneville Co. 127 Accounts Receivable-Crow Distributors 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 524 Repairs Expense 529 Selling Expenses 530 Office Salaries Expense 128 Accounts Receivable-Fiber Optics 129 Allowance for Doubtful Accounts 131 Interest Receivable 132 Notes Receivable 531 Rent Expense Chart of Accounts 532 Depreciation Expense-Office Equipment 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 533 Insurance Expense 534 Office Supplies Expense 535 Store Supplies Expense 151 Prepaid Insurance 181 Land 536 Credit Card Expense 537 Cash Short and Over 538 Bad Debt Expense 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation Office Equipment 539 Miscellaneous Expense 710 Interest Expense LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable 181 Land 536 Credit Card Expense 537 Cash Short and Over 538 Bad Debt Expense 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation Office Equipment 539 Miscellaneous Expense 710 Interest Expense 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 Instructions Chart of Accounts T-Accounts Journal Final Questions T-Accounts 1. Record the January 1 credit balance of $25,795 in a T-account for Allowance for Doubtful Accounts 2. B. Post each entry that affects the following selected T-accounts and determine the new balances: Allowance for Doubtful Accounts and Bad Debt Expense Allowance for Doubtful Accounts Jan. 1 Balance Dec. 31 Adj. Balance Bad Debt Expense Allowance method entries Instructions Chart of Accounts T-Accounts Journal Final Questions T-Accounts Journal 2. A. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account des MGE 10 JOURNAL ACCOUNTING EQUATION DEHIT DESCRIPTION CREDIT UUTIES ASSETS EQUITY POST, RULE DATE ! 1 4 7 9 10 11 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 recevables. The adjusting entry on December 3t had been based on an estimated expensem of or of the net sales of $18,000,000 for the year, determine the following A. Bad debt expense for the year. $ Balance in the allowance account after the adjustment of December 31,5 Expected net realizable value of the accounts receivable as of December 31.8