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The following transactions were completed by Irvine Company during the current fiscal year ended December 3 1 : Record the January 1 credit balance of

The following transactions were completed by Irvine Company during the current fiscal year ended December 31 :
Record the January 1 credit balance of $25,330 in a T-account for
Feb. 8 Received 40% of the $18,500 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 $7,430 cash in full payment of Seth's account.
Aug. 13 Wrote off the $6,470 balance owed by Kat Tracks Co., which has no assets.
Oct. 31 Reinstated the account of Crawford C0., which had been written off in the preceding year as
uncollectible. Journalized the receipt of $3,870 cash in full payment of the account.
Dec. 31 Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., $7,245; Bonneville
Co., $5,595; Crow Distributors, $9,500; Fiber Optics, $1,060.
Dec. 31 Based on an analysis of the $1,769,500 of accounts receivable, it was estimated that $35,390 will be
uncollectible. Journalized the adjusting entry.
Required:
Record the January 1 credit balance of $25,330 in a T-account for Allowance for Doubtful Accounts.
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.
Determine the expected net realizable value of the accounts receivable as of December 31.
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 14 of 1% of the sales of $18,430,000 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.
Final Questions
Determine the expected net realizable value of the accounts receivable as of December 31(after all of the adjustments and the adjusting entry).
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 14 of 1% of the sales of $18,430,000 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.
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