1. Record the January 1 credit balance of $26,080 in a T-account for Allowance for Doubtful Accounts.2. A. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.B. Post each entry that affects the following selected T-accounts and determine the new balances: Allowance for Doubtful Accounts and BadDebt Expense.3. Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjustingentry).4. Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables, the adjusting entry on December 31had been based on an estimated expense of 4 of 1% of the net sales of $18,260,000 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. The following transactions were completed by Irvine Company during the current fiscal year ended December 31:Feb. 8Received 35% of the $18,100 balance owed by DeCoy Co., a bankrupt business, and wrote off theremainder as uncollectible.May 27Reinstated the account of Seth Nelsen, which had been written off in the preceding year asuncollectible. Journalized the receipt of $7,300 cash in full payment of Seth's account.Aug. 13Wrote off the $6,350 balance owed by Kat Tracks Co., which has no assets.Oct. 31Reinstated the account of Crawford Co., which had been written off in the preceding year asuncollectible. Journalized the receipt of $3,865 cash in full payment of the account.Dec. 31Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., $7,105; BonnevilleCo., $5,435; Crow Distributors, $9,390; Fiber Optics, $1,075.Dec. 31Based on an analysis of the $1,796,000 of accounts receivable, it was estimated that $35,920 will beuncollectible. Journalized the adjusting entry.

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The following transactions were completed by Irvine Company during the current fiscal year ended December 31: Feb. 8 Received 35% of the $18,100 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 $7,300 cash in full payment of Seth's account. Aug. 13 Wrote off the $6,350 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 $3,865 cash in full payment of the account. Dec. 31 Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., $7,105; Bonneville Co., $5,435; Crow Distributors, $9,390; Fiber Optics, $1,075. Dec. 31 Based on an analysis of the $1,796,000 of accounts receivable, it was estimated that $35,920 will be uncollectible. Journalized the adjusting entry.

The following transactions were completed by Irvine Company during the current fiscal year ended December 31: Feb. 8 Received 35% of the $18,100 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 $7,300 cash in full payment of Seth's account. Aug. 13 Wrote off the $6,350 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 $3,865 cash in full payment of the account. Dec. 31 Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., $7,105; Bonneville Co., $5,435; Crow Distributors, $9,390; Fiber Optics, $1,075. Dec. 31 Based on an analysis of the $1,796,000 of accounts receivable, it was estimated that $35,920 will be uncollectible. Journalized the adjusting entry.

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1. Record the January 1 credit balance of $26,080 in a T-account for Allowance for Doubtful Accounts.
2. A. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.
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 4 of 1% of the net sales of $18,260,000 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.

The following transactions were completed by Irvine Company during the current fiscal year ended December 31:
Feb. 8
Received 35% of the $18,100 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 $7,300 cash in full payment of Seth's account.
Aug. 13
Wrote off the $6,350 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 $3,865 cash in full payment of the account.
Dec. 31
Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., $7,105; Bonneville
Co., $5,435; Crow Distributors, $9,390; Fiber Optics, $1,075.
Dec. 31
Based on an analysis of the $1,796,000 of accounts receivable, it was estimated that $35,920 will be
uncollectible. Journalized the adjusting entry.

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