< Instructions The following transactions were completed by Irvine Company during the current fiscal year ended December 31: Feb. 8 May 27 Aug. 13 Oct. 31 Dec. 31 Dec. 31 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 all 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..

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Instructions
The following transactions were completed by Irvine Company during the current fiscal year ended December 31:
Feb. 8
May 27
Aug. 13
Oct. 31
Dec. 31
Dec. 31
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 all 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.
Transcribed Image Text:^ Instructions The following transactions were completed by Irvine Company during the current fiscal year ended December 31: Feb. 8 May 27 Aug. 13 Oct. 31 Dec. 31 Dec. 31 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 all 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.
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