90.2K

Verified Solution

Link Copied!

The following transactions were completed by Invice Company during the content fiscal yo ended December Feb. Received 30% of the $18,900 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 $7,265 cash in full payment of Seth's account Aug 13 Wrote off the $6,410 balance owed by Kat Tracks Co. which has no assets. Od 31 Reinstated the account of Crawford Co., which had been written off in the preceding year as uncollectible. Journalized the receipt of $3,980 cash in full payment of the account Dec. Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., 87,090; Bonneville Co.. $5,485; Crow Distributors, 99,415; Fiber Optics, $1,190. Dec. 31 Based on an analysis of the $1,774,000 of accounts receivable, it was estimated that $35,480 will be uncollectible. Journalized the adjusting entry. Record the January 1 credit balance of $25,795 in a T-account for Allowance for Doubtful Accounts 2 Joumalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. 8 Post each entry that affects the following selected T-accounts and determine the new balances: Allowance for Doubtful Accounts and Bad Debt Expense. Determine the expected not realizabile value of the counts receivable as of December 31 (after all of the adjustments and the adjusting entry). Assuming that instead of basing the provision for uncollectible accounts on an analysis of monivables, the adjusting entry on December 31 had been based on an estimated expense of % of 1% of the net sales of $18,660,000 for the year, determine the following: Bad debt expense for the year. Balance in the allowance account after the adjustment of December 31 Expected net realizable value of the accounts receivable as of December 31. A B CHART OF ACCOUNTS Irvine Company General Ledger ASSETS REVENUE 410 Sales 610 Interest Revenue 110 Cash 111 Petty Cash 121 Accounts Receivable-DeCoy Co. 122 Accounts Receivable-Seth Nelsen 123 Accounts Receivable-Kat Tracks Co 124 Accounts Receivablo-Crawford Co. 125 Accounts Receivable-Newbauer Co. 126 Accounts Receivable-Bonneville Co. 127 Accounts Receivable-Crow Distributors 128 Accounts Receivable-Fiber Optics 129 Allowance for Doubtful Accounts 131 Interest Receivable 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation Store Equipment 193 Office Equipment 194 Accumulated Depreciation Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 1 Record the January 1 credit balance of $25,795 in a T-account for Allowance for Doubtful Accounts. 2. B. Post each entry that affects the following selected T-accounts and determine the new balances: Allowance for Doubtful Accounts and Bad Debt Expense. Allowance for Doubtful Accounts Jan. 1 Balance Dec. 31 Adj. Balance Bad Debt Expense 2. A. Joumalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. JOURNAL ACCOI DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS 1 2 3 4 1. Record the January 1 credit balance of $25.795 in a T-account for Allowance for Doubtful Accounts 2. B. Poat each entry that affects the following selected T-accounts and determine the new balances: Allowance for Doubtful Accounts and Bad Debt Expense Allowance for Doubtful Accounts Jan 1 Balance Oct. 31 Feb. 8 May 27 Dec. 81 Adj Balance Bad Debt Expense 1. Record the January 1 credit balance of $25,795 in a count for Allowance fox Doublul Accounts 2. B. Post each entry that affects the following selected accounts and determine the new balance Allowance for Doubtful Accounts and Bad Debt Expense Allowance for Doubtful Accounts Jan. 1 Balance Apr. 11 Aug. 13 Dec 31 Adj Balance Oct 31 Bad Debt Expense A For Wowance for Doubtful Accounts 2 B. Poat each entry that affects the following selected accounts and determine the new balance Allowance for Doubthal Account and Bad Debt Expense Allowance for Doubtful Accounts Jan. 1 Balance May 27 Apr. 21 Dec. 31 Adj Balance Dec. 31 Bad Debt Expense A Oreo TO Wce for Doubtful Account 2. B. Post each entry that affects the following selected account and determine the new balances: Allowance for Doubtful Accounte and Bad Debt Experise Allowance for Doubtful Accounts Jan. 1 Balance May 27 Feb. 8 Balance Apr 11 Bad Debt Expense 1. Record the January 1 credit balance of $25,795 in a T-account for Allowance for Doubtful Accounts 2. B. Post each entry that affects the following selected T-accounts and determine the new balance Allowance for Doubtful Accounts and Bad Deht Experise Allowance for Doubtful Accounts Jan. 1 Balance Feb 17 Balance Dec. 31 Bad Debt Expense Oct 31 1. Record the January 1 credit balance of $25 795 in a count for Allowance for Doubtful Account 2. B. Post esch entry that affects the following selected accounts and stermine the new balances. Allowance for Doubtful Accounts and Bad Debt Expense Allowance for Doubtful Accounts Jan, 1 Balance Dec. 31 Adjusting Entry Bad Debt Expense Feb 17 Dec 31 Unadjusted Balance A Aounts 1. Record the January 1 credit balance of $25 795 in a T-account for Allowance for Doubtful Accounts 2. B. Post each entry that affects the following selected T-accounts and determine the new balances: Allowance for Doubtful Accounts Bad Debt Expense Allowance for Doubtful Accounts Jan. 1 Balance Dec 31 Adj. Balance Bad Debt Expense Dec 31 Adjusting Entry Dec. 31 Unedjusted Balance o A Taccounts Allowance for Doubtful Accounts Jan. 1 Balance v Dec. 31 Adj. Balance Bad Debt Expense July 8 Nov. 20 Dec. 31 Adjusting Entry

Answer & Explanation Solved by verified expert

See Answer