Question

If you could answer all 3 that would be greatly appreciated, thanks

1.

In the process of reconciling its bank statement for April, Donahue Enterprises' accountant compiles the following information:

Cash balance per company books on April 30	$	6,210
Deposits in transit at month-end	$	1,430
Outstanding checks at month-end	$	750
Bank charge for printing new checks	$	110
Note receivable and interest collected by bank on Donahue’s behalf	$	640
A check paid to Donahue during the month by a customer is returned by the bank as NSF	$	610

The adjusted cash balance per the books on April 30 is:

• $6,740

• $6,130

• $3,950

• $5,710

• $8,030

2.

Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to the ending inventory using FIFO.

Date	Activities	Units Acquired at Cost	Units Sold at Retail
May 1	Beginning Inventory	250 units @ $10
5	Purchase	270 units @ $12
10	Sales		190 units @ $20
15	Purchase	150 units @ $13
24	Sales		140 units @ $21

• $4,100

• $3,460

• $3,590

• $3,860

• $4,230

3.

A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts:

Accounts receivable	$	348,000	debit
Allowance for uncollectible accounts		670	debit
Net Sales		793,000	credit

All sales are made on credit. Based on past experience, the company estimates 0.5% of net credit sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

• Debit Bad Debts Expense $3,295; credit Allowance for Doubtful Accounts $3,295.

• Debit Bad Debts Expense $4,635; credit Allowance for Doubtful Accounts $4,635.

• Debit Bad Debts Expense $2,410; credit Allowance for Doubtful Accounts $2,410.

• Debit Bad Debts Expense $1,740; credit Allowance for Doubtful Accounts $1,740.

• Debit Bad Debts Expense $3,965; credit Allowance for Doubtful Accounts $3,965.

Answer 1

1) Adjusted cash balance

Cash balance per company books on April 30	6210
Collection	640
Less: bank charges	-110
Less: NSF Check	-610
Adjusted cash balance	6130

So answer is b) $6130

2) Ending inventory = (150*13+190*12) = 4230

So answer is e) $4230

3) Bad debt expense = 793000*.50% = 3965

So answer is e) Debit Bad Debts Expense $3,965; credit Allowance for Doubtful Accounts $3,965.