Purchase Solution

Bank reconciliation / bad debts

Not what you're looking for?

Ask Custom Question

Please see attached - 4 questions

E8-27
Angela Lansbury Company deposits all receipts and makes all payments by check. The following information is available from the cash records.

June 30 Bank Reconciliation
Balance per bank 7,000
Add: Deposits in transit 1,540
Deduct: Outstanding checks (2,000)
Balance per books 6,540

Month of July Results Per Bank

Balance July 31 8,650
July deposits 5,000
July checks 4,000
July note collected (not included in July deposits) 1,000
July bank service charge 15
July NSF check from a customer, returned by bank (recorded by bank as a charge) 335

(a) Prepare a bank reconciliation going from balance per bank and balance per books to correct cash balance.
(b) Prepare the journal entry or entries to correct the cash account.

P8-2
Bad-Debt Reporting

3. Uhura Co. provides for doubtful accounts based on 3% of credit sales. The following data are available for 2008.
Credit sales during 2008 2,100,000
Allowance for doubtful accounts 1/1/08 17,000
Collection of accounts written off in prior years
(customer credit was restablished) 8,000
Customer accounts written off as uncollectible during 2008 30,000

What is the balance in the Allowance for Doubtful Accounts at December 31, 2008?

4. At the end of its first year of operations, December 31, 2008. Chekov Inc. reported the following information.
Accounts receivable, net of allowance for doubtful accounts 950,000
Customer accounts written off as uncollectible during 2008 24,000
Bad debt expense for 2008 84,000

What should be the balance in accounts receivable at 12/31/08, before subtracting the allowance for doubtful accounts?

5. The following accounts were taken from Chappel Inc's trial balance at 12/31/08.
Debit Credit
Net credit sales 750,000
Allowance for doubtful accounts 14,000
Accounts receivable 410,000

If doubtful accounts are 3% of accounts receivable, determine the bad debt expense to be reported for 2008.

Purchase this Solution

Solution Summary

The solution explains some questions relating to bank reconciliation and bad debts

Purchase this Solution


Free BrainMass Quizzes
Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.