PR 6-1 Allowance method The following transactions were completed by Irvine Company during the current fiscal year ended December 31 : Feb. 8. Received 40% of the $18,000 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. Received $7,350 in full payment of Seth's account. Aug. 13. Wrote off the $6,400 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, Received $3,880 in full payment of the account. Dec. 31. Wrote off $23,200 of accounts as uncollectible. 31. Based on an analysis of the $1,785,000 of accounts receivable, it was estimated that $35,700 will be uncollectible. The beginning of the year balance on January 1 of Allowance for Doubtful Accounts was $(26,000). Instructions 1. Assuming that Irvine Company uses the allowance method, illustrate the effects of the preceding transactions on the accounts and financial statements of Irvine Company. 2. What is the net realirable value of Irvine Company's accounts receivable after the adjustment for uncollectible accounts on December 31? 3. Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables, the adjustment on December 31 had been based on an estimated expense of 14 of 1% of the sales of $18,200,000 for the year, determine the following: a. Bad debt expense for the year. b. Balance in the allowance account after the adjustment on December 31 . c. Expeded net realizable value of the accounts receivable as of December 31