Screenshot your work. The following transactions were completed by The Irvine Co

Question

Screenshot your work.

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

1. A. Journalize the transactions. For the December 31 adjusting entry, assume the $1,782,000 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. The journal has 20 spots for entry.

The cash account for Brentwood Bike Co. at May 1, 2016, indicated a balance of $33,857. During May, the total cash deposited was $139,616, and checks written totaled $138,547. The bank statement indicated a balance of $43,270 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles.The journal has seven spots for the journal.

Feb. 8 Received 40% of the $17,000 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 preceding year as uncollectible. Journalized the receipt of $7,405 cash in full payment of Seth’s account. Aug. 13 Wrote off the $6,460 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 $3,940 cash in full payment of the account. Dec. 31 Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., $7,095; Bonneville Co., $5,540; Crow Distributors, $9,495; Fiber Optics, $1,035. Dec. 31 Based on an analysis of the $1,782,000 of accounts receivable, it was estimated that $35,640 will be uncollectible. Journalized the adjusting entry.

Explanation / Answer

Journal

Date Particulars Debit Credit Feb 8 Cash 6800 Bad debts 10200 Decoy & Co. 17000 May 27 Cash 7405 Bad debts recovered 7405 Aug 13 Bad debts 6460 Kat Tracks Co. 6460 Oct 31 Cash 3940 Bad debts recovered 3940 Dec 31 Bad debts 23975   Newbauer Co 7095   Bonneville Co 5540   Crow Distributors 9495   Fiber Optics 1035 Dec 31 P&L 35640 Provision for doubtful debts 35640

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