Cash Balance Per Books/Allowance for Doubtful Accounts
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Marcus Company developed the following reconciling information in preparing its September bank reconciliation:
Cash balance per bank, 9/30 $11,000
Note receivable collected by bank 6,000
Outstanding checks 9,000
Deposits-in-transit 4,500
Bank service charge 75
NSF 1,200
Using the above information, determine the cash balance per books (before adjustments) for the Marcus Company.
$9,775
$15,725
$15,500
$1,775
I think the answer is 15,500
Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment), and uncollectible accounts expense is estimated at 3% of net sales. If net sales are $600,000, the amount of the adjusting entry to record the provision for doubtful accounts is _______.
$18,500
$17,500
$18,000
none of the above
I think the answer is 18,000
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Solution Summary
The solution explains two problems relating to cash balance per books and allowance for doubtful accounts
Solution Preview
1. We are given the cash balance per bank. We need to adjust this for the entries that have been made in the books and not in the bank. These entries are deposit in transit and outstanding checks. The rest are ...
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