Question

Instructions 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 of 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 $7,350 cash in full payment of Seth's account. Aug 13 Wrote of the S6 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 Journalized the receipt of $3,880 cash in full payment of the account Dec 31 Wrote off the following accounts as uncollectible (compound entry) Newbauer Co. $7,190: Bonneville Co $5,500 Crow Distributors 59.400 Fiber Optics, $1.110 Dec. 31 Based on an analysis of the $1.785,000 of accounts receivable it was estimated that $35 700 will be

please help me solve all, I've included all the charts of accounts

Answer 1

Feb. 8 Irvine company Part 1 . journal Entries Cash ( 18000 * 40 %) Allowance for doubtful debts Accounts receivable-Decoy 7200 10800 Allowance for doubtful debts Accounts receivable 10800 Opening balance Accounts receivable 6400 Accounts receivable Accounts receivable 23200 Accounts receivable Closing Balance given ) 35700 Bad debt exp.( balancing figure) 26000 7350 3880 38870 18000 7350 76100 76100 May-27 Accounts receivable - Seth Allowance for doubtful debts (To reinstate the account previously written off) 7350 7350 Cash Accounts receivable - Seth (to rceord the collection) 7350 Allowance for doubtful debts required format) Accounts receivable 10800 Opening balance Accounts receivable 6400 Accounts receivable Accounts receivable 23200 Accounts receivable Unadjusted balance Adjusting entry Adjusted balance 26000 7350 3880 -3170 38870 35700 6400 Aug. 13 Allowance for doubtful debts Accounts receivable- Kat (To record the write off) 6400 Bad debt exp. 38870 Adjusting entry 3880 Oct. 31 Accounts receivable- Crawford Allowance for doubtful debts (To reinstate the account previously written off) 3880 Part 3 Gross amount Less:- Allowance NRV 1785000 (since opening bal. was not given therefore, figure given 35700 in last point has been assumed to be net of all adjustements) 1749300 3880 Cash Accounts receivable- Crawford (to rceord the collection) 3880 Part 4 Bad debt exp. = 18200000 * 0.25% = 45500 23200 Dec. 31 Allowance for doubtful debts Accounts receivable (To record the write off) 23200 38870 Dec. 31 Bad debt exp. Allowance for doubtful debts Allowance for doubtful debts required format) Accounts receivable 10800 Opening balance Accounts receivable 6400 Accounts receivable Accounts receivable 23200 Accounts receivable Unadjusted balance Adjusting entry Adjusted balance 26000 7350 3880 -3170 45500 42330 38870 Gross amount Less:- Allowance NRV 1785000 42330 1742670