| B. | Post each entry that affects the following selected T accounts and determine the new balances: Allowance for Doubtful Accounts and Bad Debt Expense. The following transactions were completed by The 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 Seths 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. 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. For the December 31 adjusting entry, assume the $1,785,000 balance in accounts receivable reflects the adjustments made during the year. Refer to the chart of accounts for a listing of the account titles the company uses. | | B. | Post each entry that affects the following selected T accounts and determine the new balances: Allowance for Doubtful Accounts and Bad Debt Expense. The following transactions were completed by The 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 Seths 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. 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. For the December 31 adjusting entry, assume the $1,785,000 balance in accounts receivable reflects the adjustments made during the year. Refer to the chart of accounts for a listing of the account titles the company uses. | | B. | Post each entry that affects the following selected T accounts and determine the new balances: Allowance for Doubtful Accounts and Bad Debt Expense. The following transactions were completed by The 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 Seths 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. 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. For the December 31 adjusting entry, assume the $1,785,000 balance in accounts receivable reflects the adjustments made during the year. Refer to the chart of accounts for a listing of the account titles the company uses. | | B. | Post each entry that affects the following selected T accounts and determine the new balances: Allowance for Doubtful Accounts and Bad Debt Expense. The following transactions were completed by The 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 Seths 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. 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. For the December 31 adjusting entry, assume the $1,785,000 balance in accounts receivable reflects the adjustments made during the year. Refer to the chart of accounts for a listing of the account titles the company uses. | | B. | Post each entry that affects the following selected T accounts and determine the new balances: Allowance for Doubtful Accounts and Bad Debt Expense. | | | | | | | | |
