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The following transactions were completed by Irvine Company during the current fiscal year ended December 3 1 : Feb. 8 Received 4 0 % of
The following transactions were completed by Irvine Company during the current fiscal year ended December :
Feb. Received of the $ balance owed by DeCoy Co a bankrupt business, and wrote off the remainder as uncollectible.
May Reinstated the account of Seth Nelsen, which had been written off in the preceding year as uncollectible. Journalized the receipt of $ cash in full payment of Seths account.
Aug. Wrote off the $ balance owed by Kat Tracks Co which has no assets.
Oct. Reinstated the account of Crawford Co which had been written off in the preceding year as uncollectible. Journalized the receipt of $ cash in full payment of the account.
Dec. Wrote off the following accounts as uncollectible compound entry: Newbauer Co $; Bonneville Co $; Crow Distributors, $; Fiber Optics, $
Dec. Based on an analysis of the $ of accounts receivable, it was estimated that $ will be uncollectible. Journalized the adjusting entry.
Required:
Record the January credit balance of $ in a Taccount for Allowance for Doubtful Accounts.
a Journalize the transactions.
b Post each entry that affects the following selected Taccounts 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
Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables, the adjusting entry on December had been based on an estimated expense of of of the sales of $ for the year, determine the following:
a Bad debt expense for the year.
b Balance in the allowance account after the adjustment of December
c Expected net realizable value of the accounts receivable as of December General Ledger: General Ledger
ASSETS
Cash
Petty Cash
Accounts ReceivableDeCoy Co
Accounts ReceivableSeth Nelsen
Accounts ReceivableKat Tracks Co
Accounts ReceivableCrawford Co
Accounts ReceivableNewbauer Co
Accounts ReceivableBonneville Co
Accounts ReceivableCrow Distributors
Accounts ReceivableFiber Optics
Allowance for Doubtful Accounts
Interest Receivable
Notes Receivable
Merchandise Inventory
Office Supplies
Store Supplies
Prepaid Insurance
Land
Store Equipment
Accumulated DepreciationStore Equipment
Office Equipment
Accumulated DepreciationOffice Equipment
LIABILITIES
Accounts Payable
Salaries Payable
Sales Tax Payable
Interest Payable
Notes Payable
EQUITY
Common Stock
Retained Earnings
Dividends
REVENUE
Sales
Interest Revenue
EXPENSES
Cost of Goods Sold
Sales Salaries Expense
Advertising Expense
Depreciation ExpenseStore Equipment
Delivery Expense
Repairs Expense
Selling Expenses
Office Salaries Expense
Rent Expense
Depreciation ExpenseOffice Equipment
Insurance Expense
Office Supplies Expense
Store Supplies Expense
Credit Card Expense
Cash Short and Over
Bad Debt Expense
Miscellaneous Expense
Interest Expense; Determine the expected net realizable value of the accounts receivable as of December 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 had been based on an estimated expense of of of the sales of $ for the year, determine the following:
a Bad debt expense for the year.
$
b Balance in the allowance account after the adjustment of December
$
c Expected net realizable value of the accounts receivable as of December
$
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