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. Joumalized the receipt of $7.270 cash in full payment of Seth's 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. 1. Record the January 1 credit balance of $25,685 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 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 % of 1% of the net 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 Book Show Me How CHART OF ACCOUNTS Irvine Company General Ledger REVENUE ASSETS 410 Sales 110 Cash 610 Interest Revenue 111 Petty Cash 121 Accounts Receivable-DeCoy Co. EXPENSES 122 Accounts Receivable-Seth Nelsen 510 Cost of Goods Sold 123 Accounts Receivable-Kat Tracks Co. 520 Sales Salaries Expense 124 Accounts Receivable-Crawford Co. 125 Accounts Receivable-Newbauer Co. 521 Advertising Expense 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 191 Store Equipment 537 Cash Short and Over 141 Mercianuse ventory 533 Insurance Expense 145 Office Supplies 534 Office Supplies Expense 146 Store Supplies 535 Store Supplies Expense 151 Prepaid Insurance 536 Credit Card Expense 181 Land 537 Cash Short and Over 191 Store Equipment 538 Bad Debt Expense 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 539 Miscellaneous Expense 194 Accumulated Depreciation-Office Equipment 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 T-Accounts 1. Record the January 1 credit balance of $25,685 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 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 10 11 12 14 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 uncolectible 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 $17,710,000 for the year, determine the following A Bad debt expense for the year. S B. Balance in the alowance account after the adjustment of December 31.S C. Expected net realizable value of the accounts receivable as of December 31. S