The following transactions were completed by Irvine Company during the current fiscal year ended December 31: Feb.
Fantastic news! We've Found the answer you've been seeking!
Question:
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. |
Required:
1. | Record the January 1 credit balance of $26,080 in a T-account for Allowance for Doubtful Accounts. | ||||||
2. |
| ||||||
3. | Determine the expected net realizable value of the accounts receivable as of December 31. | ||||||
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 ¼ of 1% of the sales of $18,260,000 for the year, determine the following:
|
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Posted Date: