Cer 8 - Assignment 3 eBook Show Me How Calculator 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 Received 35% of the $18,600 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 $7,445 cash in full payment of Seth's account. Wrote off the $6,375 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 $3,840 cash in full payment of the account. Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., $7,240; Bonneville Co., 65,575; Crow Distributors, 99,356; Fiber Optics, $1,035. Based on an analysis of the $1,768,000 of accounts receivable, it was estimated that $35,360 will be uncollectible. Journalized the adjusting entry Dec. 31 Dec. 31 1. Record the January 1 credit balance of $26.195 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 not 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 W of 1% of the net sales of $18,380,000 for the year, determine the following: A. Bad debt expense for the year 3 - Assignment 3 eBook Show Me How Calculator astructions Journal Shaded cells ha 2. A. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. How does grading work? JOURNAL Score: 237/249 ACCOUNTING EQUAT DATE DESCRIPTION POST. REF. DEBIT 1 CREDIT Feb. 8 ASSETS Cash LIABILITIES 6,510.00 1 2 12,090.00 t 3 18,600.00 + 4 7,445.00 1 5 7.445.00 1 Allowance for Doubtful Accounts Accounts Receivable-Decoy Co. May 27 Accounts Receivable-Seth Nelsen Allowance for Doubtful Accounts Cash Accounts Receivable-Seth Nelsen Aug. 13 Allowance for Doubtful Accounts Accounts Receivable-Kat Tracks Co. 6 7,445.00 t 7,445.00 1 8 6,375.00 t 9 6,375.00 + been based on an estimated expense of 4 of 1% of the net sales of $18,380,000 for the year, determine the following: A. Bad debt expense for the year. HUVILU eBook Show Me How Calculator mstructions Journal Shaded cell 2 Accounts Receivable-Seth Nelsen 5 7,445.00 + Aug. 13 6,375.00 1 9 Allowance for Doubtful Accounts Accounts Receivable-Kat Tracks Co. Accounts Receivable-Crawford Co. Allowance for Doubtful Accounts 6,375.00 1 10 Oct. 31 3,840.00 1 11 > 3,840.00 + 12 Oct. 31 Cash 13 14 Dec 31 23,205.00 1 15 7,240.00 1 16 Accounts Receivable-Crawford Co. Allowance for Doubtful Accounts Accounts Receivable-Newbauer Co. Accounts Receivable-Bonneville Co. Accounts Receivable-Crow Distributors Accounts Receivable-Fiber Optics Bad Debt Expense Allowance for Doubtful Accounts 5,575.00 + 17 9,355.00 + 18 1,035.00 1 19 Dec. 31 39,550.00 20 39,550.00 Points: been based on an estimated expense of of 1% of the net sales of $18,380,000 for the year, determine the following: A. Bad debt expense for the year. SNOW Me How Calculator Instructions Chart of Accounts T-Accounts Journal Final Questions Instructions Journal Final Questions Shaded cells have feedback. Shaded cells have feedback. 3. Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry) 1,732,640 Points: 1/1 Feedback Check My Work 3. Remember that net realizable value is the amount that is expected to be collected or realized. 4. Assurning 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 exper of of 1% of the net sales of $18,380,000 for the year, determine the following: A. Bad debt expense for the year. $ 50,140 Points: 0/1 B. Balance in the allowance account after the adjustment of December 31. $ 45,950 X Points: 0/1 Check My Work 1 more Check My Work uses remaining. LISUULLUNS O Accounts T-Accounts Journal Final Questions Instructions Journal Shaded cel Final Questions 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 of 6 of 1% of the net sales of $18,380,000 for the year, determine the following: Shaded A. Bad debt expense for the year. $ 50,140 X Po B. Balance in the allowance account after the adjustment of December 31. $ 45,950 X PC C. Expected net realizable value of the accounts receivable as of December 31. $ 1.722,050 X Feedback Check My Work A. and B.The analysis of receivables method places more emphasis on the net realizable value of the receivables and thus, emphasizes the balance s amount of the adjusting entry is the amount that will yield an adjusted balance for Allowance for Doubtful Accounts equal to that estimated by the aging C. The analysis of receivables method is based on the assumption that the longer an account receivable is outstanding the less likely that it will be colle