Homework Answers
Answer to Q.7.
Item appearing on bank reconciliation that requires an adjustment entry is to be passed in company records- (b) bank service charges.
Note- Adjusting entry is passed only for those items which are not recorded in company books but are reflected in bank books.
Answer to Q.8
A properly administered bank reconciliation shows how much should be reported on the balance sheet for cash- (a) true.
Only after a correctly prepared bank reconciliation a company gets to know if there is any adjustment entries are remaining to be passed and after making such adjusting entries correct balance of Cash at bank is revealed. hence the above statement is true.
Answer to Q.9
Fund containing small amount of cash that is used to pay for minor expenditure is - (d) Petty cash fund.
Answer to Q. 10
Accounts Receivable is usually collected in short span of time- (a) True.
Note- Accounts receivable represents trade debtors for goods or services provided. it is usually collected within few days or at maximum to one year. They are also represented as current assets in balance sheet.
Answer to Q 11.
Under Direct write off method , bad debts is recorded in the year that specific accounts receivable is determined to be uncollectible- (a) true.
Note- unlike in provision method where a provision is made for allowance for debts for a specific percentage of total accounts receivable, under direct method bad debts is recorded in the year when an account receivable is determined to be uncollectible.
Answer to Q 12.
Correct entry under allowance method for writing off an uncollectible account is-
(b) Allowance for doubtful debts xxx
Accounts Receivable xxx.
Note- under allowance method firstly a provision is made with journal entry by debiting bad debts and crediting allowance for doubtful debts and when an accounts actually becomes uncollectible then, Allowance for doubtful debts is debited and trade receivables is credited.
Add Answer to:
7. Which of the following items that appears on a bank reconciliation requires an adjusting entry?...
as soon as possible thx so much 0.023 In doing the bank reconciliation your book balance...
as soon as possible
thx so much
0.023 In doing the bank reconciliation your book balance is higher than your bank balance. This could be due to you not having: Select one: a. Recorded a direct debit in your accounts b. A direct credit for interest in your accounts c. Recorded un-presented cheques in the reconciliation d. A cheque being recorded for $552 in the books whereas it was actually written for $525 0.027 A cheque is written to replenish...
orange corporation uses the following items for its bank reconciliation for the month of April balance...
orange corporation uses the following items for its bank
reconciliation for the month of April balance per books april 30
$905
1. Orange Corporation uses the following items for its bank reconciliation for the month of April. Balance per books April 30 $ 905 Balance per bank statement April 30 $11,300 (1) Checks written in April but still outstanding $6,300. (2) Checks written in March but still outstanding $2,800. (3) Deposits of April 30 not yet recorded by bank $4,900....
In preparing a bank reconciliation for the month of November 2019, Williams Colas available the following...
In preparing a bank reconciliation for the month of November 2019, Williams Colas available the following information Balance per company books, 11/30/19 $39,140 Bank service charges for November 35 Deposits in transit, 11/30/19 NSF check received from a customer in November 1.285 6,300 Outstanding checks, 11/30/19 2.900 What is the correct amount of cash for this checking account at November 30, 2019? A B. $40,390. $39,140 C. D. $37,820 $35,740. 15. All of the following are reported as contra accounts...
The balance of Allowance for Doubtful Accounts prior to making the adjusting entry to record estimated...
The balance of Allowance for Doubtful Accounts prior to making the adjusting entry to record estimated uncollectible accounts a. is relevant to both bases of adjusting for uncollectible accounts. b. will never show a debit balance at this stage in the accounting cycle. c. is relevant when using the percentage of receivables basis. d. is relevant when using the direct write-off basis. 2. To record estimated uncollectible accounts using the allowance method, the adjusting entry would be a a. debit...
e owner's equity, delb d. contra asset, credit 2. A bank reconciliation should be prepared periodically...
e owner's equity, delb d. contra asset, credit 2. A bank reconciliation should be prepared periodically because a. the company's records and the bank's records are in agreement b. the bank has not recorded all of its transactions e. any differences between the company's records and the bank's records should be determined, and made by either party should be discovered and corrected d. the bank must make sure that its records are correct 3. Gunnar Company gathered the following reconciling...
end of the current year, ARS Industries has the following account balances before making an adjusting entry for uncollec...
end of the current year, ARS Industries has the following account balances before making an adjusting entry for uncollectible accounts Accounts Receivable has a balance $1,300,000; Allowance for Doubtful Accounts $ 7,000 Credit sales for this year $8,500,000 A. If the company uses the percent of sales method and estimates that ½ of 1% of credit sales for the year will be uncollectible, then a. Determine the bad debt expense for the period, and journalize the adjusting entries. (2 points)...
Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for...
Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company's fiscal year-end. The 2020 balance sheet disclosed the following: Current assets: Receivables, net of allowance for uncollectible accounts of $33,000 $ 447,000 During 2021, credit sales were $1,765,000, cash collections from customers $1,845,000, and $38,000 in accounts receivable were written off. In addition, $3,300 was collected from a customer whose account was written...
Under the allowance method of recognizing uncollect Vance method of recognizing uncollectible accounts, the entry to...
Under the allowance method of recognizing uncollect Vance method of recognizing uncollectible accounts, the entry to write off an uncollectible account a. reduces both bad debt expense and account receivable. b. increases both allowance for doubtful accounts and account receivable. c. reduces both allowance for doubtful accounts and account receivable. d. has no effect allowance for doubtful accounts.
At the beginning of the current period, Larkspur Corp. had balances in Accounts Receivable of $202,700...
At the beginning of the current period, Larkspur Corp. had balances in Accounts Receivable of $202,700 and in Allowance for Doubtful Accounts of $9,200 (credit). During the period, it had net credit sales of $744,100 and collections of $829,950. It wrote off as uncollectible accounts receivable of $7,798. However, a $2,979 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $26,820 at the end of the period. (Omit...
1. Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is...
1. Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $390,000 and credit sales are $1,300,000. An aging of accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment? a. Bad Debt Expense 22,000 Allowance for Doubtful Accounts 22.000 b. Bad Debt Expense 17,000 Allowance for Doubtful Accounts 17,000 c....
as soon as possible
thx so much
0.023 In doing the bank reconciliation your book balance is higher than your bank balance. This could be due to you not having: Select one: a. Recorded a direct debit in your accounts b. A direct credit for interest in your accounts c. Recorded un-presented cheques in the reconciliation d. A cheque being recorded for $552 in the books whereas it was actually written for $525 0.027 A cheque is written to replenish...
orange corporation uses the following items for its bank
reconciliation for the month of April balance per books april 30
$905
1. Orange Corporation uses the following items for its bank reconciliation for the month of April. Balance per books April 30 $ 905 Balance per bank statement April 30 $11,300 (1) Checks written in April but still outstanding $6,300. (2) Checks written in March but still outstanding $2,800. (3) Deposits of April 30 not yet recorded by bank $4,900....
In preparing a bank reconciliation for the month of November 2019, Williams Colas available the following information Balance per company books, 11/30/19 $39,140 Bank service charges for November 35 Deposits in transit, 11/30/19 NSF check received from a customer in November 1.285 6,300 Outstanding checks, 11/30/19 2.900 What is the correct amount of cash for this checking account at November 30, 2019? A B. $40,390. $39,140 C. D. $37,820 $35,740. 15. All of the following are reported as contra accounts...
e owner's equity, delb d. contra asset, credit 2. A bank reconciliation should be prepared periodically because a. the company's records and the bank's records are in agreement b. the bank has not recorded all of its transactions e. any differences between the company's records and the bank's records should be determined, and made by either party should be discovered and corrected d. the bank must make sure that its records are correct 3. Gunnar Company gathered the following reconciling...
Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company's fiscal year-end. The 2020 balance sheet disclosed the following: Current assets: Receivables, net of allowance for uncollectible accounts of $33,000 $ 447,000 During 2021, credit sales were $1,765,000, cash collections from customers $1,845,000, and $38,000 in accounts receivable were written off. In addition, $3,300 was collected from a customer whose account was written...
Under the allowance method of recognizing uncollect Vance method of recognizing uncollectible accounts, the entry to write off an uncollectible account a. reduces both bad debt expense and account receivable. b. increases both allowance for doubtful accounts and account receivable. c. reduces both allowance for doubtful accounts and account receivable. d. has no effect allowance for doubtful accounts.
At the beginning of the current period, Larkspur Corp. had balances in Accounts Receivable of $202,700 and in Allowance for Doubtful Accounts of $9,200 (credit). During the period, it had net credit sales of $744,100 and collections of $829,950. It wrote off as uncollectible accounts receivable of $7,798. However, a $2,979 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $26,820 at the end of the period. (Omit...
1. Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $390,000 and credit sales are $1,300,000. An aging of accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment? a. Bad Debt Expense 22,000 Allowance for Doubtful Accounts 22.000 b. Bad Debt Expense 17,000 Allowance for Doubtful Accounts 17,000 c....
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