The following transactions were completed by Irvine Company during the current fiscal year ended December 31:

Feb. 8	Received 35% of the $18,600 balance owed by DeCoy Co., a bankrupt 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 $7,445 cash in full payment of Seths account.
Aug. 13	Wrote off the $6,375 balance owed by Kat Tracks Co., which has no assets.
Oct. 31	Reinstated the account of Crawford Co., which had been written off in the preceding year as uncollectible. Journalized the receipt of $3,840 cash in full payment of the account.
Dec. 31	Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., $7,240; Bonneville Co., $5,575; Crow Distributors, $9,355; Fiber Optics, $1,035.
Dec. 31	Based on an analysis of the $1,768,000 of accounts receivable, it was estimated that $35,360 will be uncollectible. Journalized the adjusting entry.

Required:

1.

Record the January 1 credit balance of $26,195 in a T-account for Allowance for Doubtful Accounts.

2.

a.	Journalize the transactions.