Need help for 1-4c thank you :) ### Educational Resource: Financial Transactions and Adjustments#### Overview of Transactions by Irvine CompanyThe following transactions were executed by Irvine Company during the current fiscal year, ending December 31:**February 8:**- **Transaction Details:** Irvine Company received 30% of the $18,900 balance owed by DeCoy Co., a company that declared bankruptcy. The remaining balance was written off as uncollectible.**May 27:**- **Transaction Details:** The account of Seth Nelsen, which was previously written off as uncollectible, was reinstated. The company received a payment of $7,265 in full settlement of Seth’s account.**August 13:**- **Transaction Details:** The company wrote off a $6,410 balance owed by Kat Tracks Co., identified as having no assets.**October 31:**- **Transaction Details:** The account of Crawford Co., previously written off as uncollectible, was reinstated. A full payment of $3,980 was received.**December 31:**- **Transaction Details (Compound Entry):** The following accounts were written off as uncollectible: - Newbauer Co.: $7,090 - Bonneville Co.: $5,485 - Crow Distributors: $9,415 - Fiber Optics: $1,190- **Financial Analysis:** Based on an analysis of the $1,774,000 in accounts receivable, it was estimated that $35,480 would be uncollectible. An adjusting entry was journalized accordingly.This financial documentation is vital for understanding how businesses handle accounts receivable, write-offs, and the reinstatement of previously uncollectible debts. **Managing Accounts for Allowance for Doubtful Accounts**1. **Initial Record Keeping**: - Record the January 1 credit balance of $25,795 in a T-account for Allowance for Doubtful Accounts.2. **Transaction Processing**: - **A**. Journalize the transactions. Utilize the Chart of Accounts for precise account titles. - **B**. Post each transaction affecting the following selected T-accounts to determine the new balances: - Allowance for Doubtful Accounts - Bad Debt Expense3. **Calculating Net Realizable Value**: - Determine the expected net realizable value of accounts receivable as of December 31 (after all adjustments and the adjusting entry).4. **Alternative Estimation Method**: - If the provision for uncollectible accounts is based on an analysis of receivables, then evaluate the following as of December 31: - **A**. Calculate the Bad Debt Expense for the year, assuming an estimated expense of ¼ of 1% of net sales of $18,660,000. - **B**. Balance in the allowance account after the December 31 adjustment. - **C**. Expected net realizable value of accounts receivable as of December 31.This guide helps in understanding and managing doubtful accounts for accurate financial reporting.

Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and specify the other subparts (up to 3) you’d like answered. Please post question 3 and 4 (all parts) as a separate question1. Record the January 1 credit balance of $25,795 in a T account for allowance for doubtful debts The T account for allowance for doubtful debts will be presented as follows2A . Journalize the transactions Feb 8 Cash A/c (30% x $18,900) $5,670 Allowance for doubtful debts A/c $13,230 To Accounts receivables A/c $18,900 May 27 Accounts receivables A/c $7,265 To Allowance for doubtful debts A/c $7,265 Cash A/c $7,265 To Accounts Receivables A/c $7,265 Aug 13 Allowance for doubtful debts A/c $6,410 To Accounts receivables A/c $6,410 Oct 31 Accounts receivables A/c $3,980 To Allowance for doubtful debts A/c $3,980 Cash A/c $3,980 To Accounts Receivables A/c $3,980 Dec 31 Allowance for doubtful debts A/c $23,180 ($7,090 + $5,485 + $9,415 + $1,190) To Accounts receivables A/c $23,180 Dec 31 Bad Debt Expense A/c $ 35,480 To Allowance for doubtful debts A/c $35,480 2B. Post each entry that affects : Allowance for doubtful debts and bad debt expense

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Accounting

following transactions were completed by Irvine Company during the current fiscal year ended December 31: Feb. 8 Received 30% of the $18,900 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 $7,265 cash in full payment of Seth's account. Aug. 13 Wrote off the $6,410 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 $3,980 cash in full payment of the account. Dec. 31 Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., $7,090; Bonneville Co., $5,485; Crow Distributors, $9,415; Fiber Optics, $1,190. Dec. 31 Based on an analysis of the $1,774,000 of accounts receivable, it was estimated that $35,480 will be uncollectible. Journalized the adjusting entry.