Chart of Accounts T-Accounts Journal Final Questions The tollowing transactions
ID: 2557328 • Letter: C
Question
Chart of Accounts T-Accounts Journal Final Questions The tollowing transactions were completed by Irvine Company during the current iscal year ended December 31 Feb. 8 Received 45% ofthn S 18.700 balance owed by Decoy Co . a bankrupt business, and wrote off the remainder as uncollectible May 27 Reinstated the account of Seth Nelisen, which had been withen offin the preceding year as uncollectible. Journalized the receipt of $7,270 cash in full payment of Seth's account Aug. 13 Wrote off the $6,360 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 Dec. 31 Wrote off the following accounts as uncollectble (compound entry): Newbauer Co, $7,265, Bonneville Dec 31 Based on an analysis of the $1,759.500 of accounts receivable, it was estimated hat $35,190 wll be 1. Record the January 1 credtit balance of $25 685 n a T-account for Alowance for Doutthuil Accounts uncollectible. Journalized the receipt of $3,975 cash in ull payment of the account Co, $5,595, Crow Distributors, $9,305 Fiber Optics, $1,150 uncolectible Journalized the adjusing entry 2 A Journalize the transactions Refer to the Chart of Accounts for exact wording of account s B Post each entry that affects the folowing selected -accounts and determine the new belances p Alowance for Doubetul Accounts and Bad Deot Expense 3 Decermine the expected aalice or me acnreceie es of Decemer 3 rader a that instead of basing the provison for uncoilectole accounts on an anayos of ceceiuacies the agjusting entry on December 3 e been based on an estimated expense or % of t% ofthe netsaes orst,710 000 tr Pt year dremne he thing A Ba cetteeo for the year B Balance in the alowance a C. Expecned net reaizabie vaiue of ths accounts recenvabie as of Decemoer 3r account aner the a ustment of Decemper 31 Previous ELL 0Explanation / Answer
1 & 2.
3. $1,724,310
4.
A. Bad Debts Expense = $44,275 (1/4 of 1% of $17,710,000)
B. Balance in Allowance account = $41,245 ($44,275 - -$3,030)
C.Expected net realizable value of receivables = $1,715,225 ($1,759,500 - $44,275)
Allowance for Doubtfu Accounts Date Details Debit Date Details Credit Feb.8 A/R 10285 Jan.1 Beg.Bal. 25685 Aug.13 A/R 6360 May.27 A/R 7270 Dec.31 A/R 23315 Oct.31 A/R 3975 Oct.31 Bad Debts 38220 39960 75150 End.Bal. 35190