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The following transactions were completed by The Irvine Company during the current fiscal year ended December 31:

Feb. 8	Received 35% of the $18,600 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 $7,445 cash in full payment of Seths account.
Aug. 13	Wrote off the $6,375 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 $3,840 cash in full payment of the account.
Dec. 31	Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., $7,240; Bonneville Co., $5,575; Crow Distributors, $9,355; Fiber Optics, $1,035.
Dec. 31	Based on an analysis of the $1,768,000 of accounts receivable, it was estimated that $35,360 will be uncollectible. Journalized the adjusting entry.

	Required:
1.	Record the January 1 credit balance of $26,195 in a T account for Allowance for Doubtful Accounts.
2.	A. Journalize the transactions. For the December 31 adjusting entry, assume the $1,768,000 balance in accounts receivable reflects the adjustments made during the year. Refer to the chart of accounts for a listing of the account titles the company uses. B. Post each entry that affects the following selected T accounts and determine the new balances: Allowance for Doubtful Accounts and Bad Debt Expense.
3.	Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry).
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 of 1% of the net sales of $18,380,000 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. 1. Record the January 1 credit balance of $26,195 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. 2. A. Journalize the transactions. For the December 31 adjusting entry, assume the $1,768,000 balance in accounts receivable reflects the adjustments made during the year. Refer to the chart of accounts for a listing of the account titles the company uses. Journal # Date Post Ref. Debit Credit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 3. Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry). $___________ 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 of 1% of the net sales of $18,380,000 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. $_____________

shaded cells have feedback. T Accounts 1. Record the January 1 credit balance of $26,195 in a Taccount for Allowance for Doubtful Accounts 2. B. Post each entry that affects the following selected Taccounts and determine the new balances: Allowance for Doubtful Accounts and Bad Debt Expense. Allowance for Doubtful Accounts Feb. 8 Jan. 1 Balance May 27 Aug. 13 Dec. 31 Adj. Balance Bad Debt Expense

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