Levels Tought:
Elementary,Middle School,High School,College,University,PHD
Teaching Since: | May 2017 |
Last Sign in: | 305 Weeks Ago, 6 Days Ago |
Questions Answered: | 66690 |
Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
PR 8-1AÂ Entries related to uncollectible accounts
The following transactions were completed by The 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 preced- ing year as uncollectible. Journalized the receipt of $7,350 cash 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 pre- ceding year as uncollectible. Journalized the receipt of $3,880 cash in full pay- ment of the account.
Dec. 31. Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., $7,190; Bonneville Co., $5,500; Crow Distributors, $9,400; Fiber Optics,
$1,110.
31.   Based on an analysis of the $1,785,000 of accounts receivable, it was estimated that $35,700 will be uncollectible. Journalized the adjusting entry.
Instructions
1.    Record the January 1 credit balance of $26,000 in a T account for Allowance for Doubtful Accounts.
2.    Journalize the transactions. Post each entry that affects the following selected T ac- counts and determine the new balances:
Allowance for Doubtful Accounts Bad Debt Expense
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 $18,200,000 for the year, determine the following:
a.    Bad debt expense for the year.
b.   Balance in the allowance account after the adjustment of December 31.
c.    Expected net realizable value of the accounts receivable as of December 31.
Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------and----------- ac-----------qui-----------sit-----------ion----------- of----------- my----------- po-----------ste-----------d s-----------olu-----------tio-----------n.P-----------lea-----------se -----------pin-----------g m-----------e o-----------n c-----------hat----------- I -----------am -----------onl-----------ine----------- or----------- in-----------box----------- me----------- a -----------mes-----------sag-----------e I----------- wi-----------ll