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

Feb. 8	Received 40% of the $18,200 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 $7,400 cash in full payment of Seths account.
Aug. 13	Wrote off the $6,465 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 $3,830 cash in full payment of the account.
Dec. 31	Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., $7,190; Bonneville Co., $5,510; Crow Distributors, $9,410; Fiber Optics, $1,205.
Dec. 31	Based on an analysis of the $1,820,500 of accounts receivable, it was estimated that $36,410 will be uncollectible. Journalized the adjusting entry.

Required:

1.

Record the January 1 credit balance of $25,415 in a T account for Allowance for Doubtful Accounts.

2.

A.	Journalize the transactions. For the December 31 adjusting entry, assume the $1,820,500 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.

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 $18,350,000 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.

nstructions The following transactions were completed by The Irvine Company during the current fiscal year ended December 31: Feb. 8 Received 40% of the $18,200 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 $7,400 cash in full payment of Seth's account. Aug. 13 wrote off the $6,465 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. Joumalized the receipt of $3,830 cash in full payment of the account Dec. 31 Wrote off the following accounts as uncollectible (compound entry Newbauer Co., $7,190; Bonneville Co., $5,510: Crow Distributors, $9,410; Fiber optics, S1,205 Dec. 31 Based on an analysis of the $1,820,500 of accounts receivable, it was estimated that $36 410 will be uncollectible. Journalized the adjusting entry. Required 1. Record the January 1 credit balance of $25,415 in a T account for Allowance for Doubtful Accounts, 2. A. Journalize the transactions. For the Decembe 31 adjusting entry, assume the $1,820,500 balance in accounts receivable reflects the adjustments made dunng the year. Refer to the chart of accounts for a listing of the account titles the 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. 3. Determine the expected net rezlizable valve. of the accounts veceivable as of December 31 (after all of the odyustments 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 24 of 1% of the net sales of $18,350,000 for the year, detenmine the following 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 Chart of Accounts ASSETS 0 Cash Petty Cash 121 Accounts Receivable-DeCoy Co 22 Accounts Receivable-Seth Nelsen 23 Accounts Receivable-Kat Tracks Co. 24 Accounts Receivable-Crawford Co. 25 Accounts Receivable-Newbauer Co. 26 Aocounts Receivable-Bonneville Co 27 Accounts Receivable-Crow Distributors 28 Accounts Receivable-Fiber optics 29 Allowance for Doubtful Accounts 31 Interest Receivable 32 Notes Receivable Merchandise Inventory 45 Office Supplies 48 Store Supplies 51 Propaid Insurance 81 Land 191 Store Equipment Accumulated Depreciation-Store Equipment 93 Office Equipment ed Depreciation Office Equipment LIABILITIES 210 Aocounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Irvine, Capital Irvine, Drawing 312 Income Summary REVENUE 0 Sales 610 Interest Revenue EXPENSES 510 Cost Merchandise Sold 520 Sales Salaries Expense Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 524 Repairs Expense 529 Selling Expenses 530 Office Salaries Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Office Supplies Expense 535 Store Supplies Expense 536 Credit Card Expense 537 Cash Short and Over 538 Bad Debt Expense 539 Miscellaneous Expense 710 Interest Expense