1. Record the January 1 credit balance of $26,000 in a T account for Allowance for Doubtful Accounts.
1. Record the January 1 credit balance of $26,000 in a T account for Allowance for Doubtful Accounts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![The following transactions were completed by The Irvine Company during the current fiscal year
ended December 31:
Feb. 8.
May 27
Aug. 13
Oct. 31
Dec. 31
Dec. 31
Chapter 8-Receivables
1.
Received 40% of the $18,000 balance owed by DeCoy Co., a bankrupt business,
and wrote off the remainder as uncollectible.
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.
Wrote off the $6.400 balance owed by Kat Tracks Co., which has no assets.
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.
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.
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:
Record the January 1 credit balance of $26,000 in a T account for Allowance for
Doubtful Accounts.
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Transcribed Image Text:The following transactions were completed by The Irvine Company during the current fiscal year
ended December 31:
Feb. 8.
May 27
Aug. 13
Oct. 31
Dec. 31
Dec. 31
Chapter 8-Receivables
1.
Received 40% of the $18,000 balance owed by DeCoy Co., a bankrupt business,
and wrote off the remainder as uncollectible.
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.
Wrote off the $6.400 balance owed by Kat Tracks Co., which has no assets.
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.
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.
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:
Record the January 1 credit balance of $26,000 in a T account for Allowance for
Doubtful Accounts.
Page 5
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GENERAL JOURNAL
Description
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Chapter 8-Receivables
GENERAL JOURNAL
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