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

Feb. 8Received 40% of the $18,000 balance owed by DeCoy Co., a bankrupt business, and wrote off the remainder as uncollectible.May 27Reinstated the account of Seth Nelsen, which had been written off in the preceding year as uncollectible. Journalized the receipt of $7,350 cash in full payment of Seths account.Aug. 13Wrote off the $6,400 balance owed by Kat Tracks Co., which has no assets.Oct. 31Reinstated the account of Crawford Co., which had been written off in the preceding year as uncollectible. Journalized the receipt of $3,880 cash in full payment of the account.Dec. 31Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., $7,190; Bonneville Co., $5,500; Crow Distributors, $9,400; Fiber Optics, $1,110.Dec. 31Based on an analysis of the $1,785,000 of accounts receivable, it was estimated that $35,700 will be uncollectible. Journalized the adjusting entry.

Required:

1. Record the January 1 credit balance of $26,000 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 $18,200,000 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 $26,000 in a T-account for 26. 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 realizatlevalue 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 the adjusting entry on December 31 had been based on an estimated expense of 1/4 of 1% of the sales of $18,200,000 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 . 2a. Journalize the transactions. Instructions The following transactions were completed by Irvine Company during the current fiscal year ended December 31: Feb. 8 Received 40% of the $18,000 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 $7,350 cash in full payment of Seth's account. Aug. 13 Wrote off the $6,400 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 $3,880 cash in full payment of the account. Dec. 31 Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., \$7,190; Bonneville Co., \$5,500; Crow Distributors, \$9,400; Fiber Optics, $1,110. Dec. 31 Based on an analysis of the $1,785,000 of accounts receivable, it was estimated that $35,700 will be uncollectible. Joumalized the adjusting entry. Required: 1. Record the January 1 credit balance of $26,000 in a T-account for Allowance for Doubtful Accounts. 2. a. Joumalize 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 vatue of the accounts receivable as of December 31. 4. Assuming that instead of basing the provision for uncollectible accounts on an analysis of the adjusting entry on December 31 had been based on an estimated expense of 4 of 1% of the sales of $18.200,000 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 realizabie value of the accounts receivable as of December 31 . CHART OF ACCOUNTS Irvine Company General Ledger ASSETS 110 Cash 111 Peity Cash 121 Accounts Recelvabie-OeCoy Co. 122 Accounts Recalvalo seth Noluen. 123 Accounts Recarvele Xer Track Ca 24 Accounts Recelvibie-Crawlord Co. ts Accounts Recoivmbit-Newbant. Co 126 Accounts Receirable Bonnevile Co 127 Accounts Recentible-Crow Deswbihon t28 Accounts Recehubie Fiter Oplics 129 Alowance for Doublu Aceounis 131 imterest Recenate. 13 Nodea Recelvasie 141 Merchansise imventory 145 othoe Supplies 146 Store supples 151 Preoad hsurare t61 Land 191 Score Equgmers 102 Accumulated Depreciaton-Sione Equioment 193 Omce Equament 194 Accumalated Depreciation-Otice Eoupment UABITIES 210 Accounts Payatie 211 Salmes Papable 213 Sales Thx Pryabie 214 interest Payatie 215 Nowes Payable courr 310 Common Stock 311 Retained Eanings 312 Dividends FEVENUE 450 saies 650 therest Rivene EXPENSES 510 Coat af Coods Seld 520 Sales Salaries Fupense S2t Adverting Exente S22. Depreciation Expense-Store Equpment 523 Delvery Expense 524 Repoin Expense 529 Seling Expenses 530 Orice Salaries Expenten 531 Rent Expense 532 Depreciation Expense-OFice Equipment 53 inturance Expenae su Oflice Sueples Expense 535 stove Supples Expense 536. Condi Cavd Expense 537 Canh Shon and Over 53e Bad Dest Expente 590 Mecetmeaus Expense 710 interest Expente