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

Feb. 8	Received 45% of the $18,700 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 $7,270 cash in full payment of Seths account.
Aug. 13	Wrote off the $6,360 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 $3,975 cash in full payment of the account.
Dec. 31	Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., $7,265; Bonneville Co., $5,595; Crow Distributors, $9,305; Fiber Optics, $1,150.
Dec. 31	Based on an analysis of the $1,759,500 of accounts receivable, it was estimated that $35,190 will be uncollectible. Journalized the adjusting entry.

Required:

1.

Record the January 1 credit balance of $25,685 in a T-account for Allowance for Doubtful Accounts.

2.

a.	Journalize the transactions.
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.

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 sales of $17,710,000 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.

1. Record the January 1 credit balance of $25,685 in a T-account for Allowance for Doubtful Accounts. 2b. Post each entry that affects the following selected T-accounts and determine the new balances: Allowance for Doubtful Accounts and 3. Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry). Feedback Check My Work 3. Remember that net realizable value is the amount that is expected to be collected or realized. 4. Assuming that instead of basing the provision for uncollectible accounts on an analysis of of 1/4 of 1% of the sales of $17,710,000 for the year, determine the following: a for the year. the adjusting entry on December 31 had been based on an estimated expense b. Balance in the allowance account after the adjustment of December 31. Points: 0/ c. Expected net realizable value of the accounts receivable as of December 31. Points: 0/ Feedback Check My Work a. and b.The analysis of receivables method places more emphasis on the net realizable value of the receivables and, thus, emphasizes the balance sheet. That is, the amount of the adjusting entry is the amount that will yield an adjusted balance for Allowance for Doubtful Accounts equal to that estimated by the aging schedule