Please see attached - 4 questions
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
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.
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.© BrainMass Inc. brainmass.com September 20, 2018, 2:54 pm ad1c9bdddf - https://brainmass.com/business/auditing/bank-reconciliation-bad-debts-372718
The solution explains some questions relating to bank reconciliation and bad debts