5. The bank statement balance of $7,000 does not include a check outstand-ing of $1,000, a deposit in transit of $275, and another company's $250check erroneously charged against your firm's account. The reconciledbank balance is:a. $6,375b. $6,580c. $6,525 d. $6,570Use the following information to answer questions 6-8. You are doing a bankreconciliation for May, 20X1. You have a $2,785 unadjusted ledger cash bal-ance and the following data:• Outstanding checks: No. 719, $200; No. 727, $800; No. 732, $625Deposits in transit, $1,200• Check No. 742 (for repairs) written for $505 but incorrectlyrecorded as $550• NSF check from a customer, $500• Bank service charge for May, $5• Balance per bank statement, $2,7506. What dollar amount should be deducted from the balance per bankstatement?a. $1,425 b. $1,625c. $505d. $2,1257. What dollar amount should be deducted from the balance per books?a. $460c. $550d. $1,6258. Which adjustment will you need to make to company books?a. a net decrease in Cash of $550b. a net decrease in Cash of $505c. a net decrease in Cash of $460d. a net increase in Cash of $45b. $505 1. While reviewing a trial balance, you notice the following account balances.Which one is likely to be an error?a. Inventory with a debit balance of $43,000b. Discount on Bonds Payable with a debit balance of $4,000c. Accumulated Depreciation with a debit balance of $8,000d. Allowance for Doubtful Accounts with a credit balance of $23,0002. Debiting an insurance payment to Rent Expense instead of InsuranceExpense is an example of...a. an accrual errorb. a deferral errorc. a classification errord. use of an incorrect accounting principle3. InCo. recorded a customer's $20,000 check as a $20,000 debit to Cash andas a $2,000 credit to Accounts Receivable. This is an example of:a. an oversightb. an incorrect account classificationc. a transposition errord. a slide error4. During a bank reconciliation, a deposit recorded by the bank but not inthe company's ledger Cash account is...a. added to both the bank balance and the ledger Cash account balanceb. added to the ledger Cash account balance onlyc. added to the bank balance onlyd. subtracted from the bank balance and added to the ledger Cashaccount balance

5. The bank statement balance of $7,000 does not include a check outstand- ing of $1,000, a deposit in transit of $275, and another company's $250 check erroneously charged against your firm's account. The reconciled bank balance is: a. $6,375 b. $6,580 c. $6,525 d. $6,570

5. The bank statement balance of $7,000 does not include a check outstand- ing of $1,000, a deposit in transit of $275, and another company's $250 check erroneously charged against your firm's account. The reconciled bank balance is: a. $6,375 b. $6,580 c. $6,525 d. $6,570

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due 31 to 60 $ 42,000 Accounts receivable Percent uncollectible Total $ 600,000 0 $ 402,000 Req A 1% Req B and C 1 to 30 $ 96,000 Complete this question by entering your answers in the tabs below. 2% 5% 61 to 90 Exercise 7-15 (Algo) Percent of receivables method LO P3 a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. b. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $12,600 credit. $ 24,000 7% c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,600 debit. Over 90 $ 36,000 10% Estimate the balance of the Allowance for Doubtful…
1. While reviewing a trial balance, you notice the following account balances. Which one is likely to be an error? a. Inventory with a debit balance of $43,000 b. Discount on Bonds Payable with a debit balance of $4,000 c. Accumulated Depreciation with a debit balance of $8,000 d. Allowance for Doubtful Accounts with a credit balance of $23,000 2. Debiting an insurance payment to Rent Expense instead of Insurance Expense is an example of... a. an accrual error b. a deferral error c. a classification error d. use of an incorrect accounting principle 3. InCo. recorded a customer's $20,000 check as a $20,000 debit to Cash and as a $2,000 credit to Accounts Receivable. This is an example of: a. an oversight b. an incorrect account classification c. a transposition error d. a slide error 4. During a bank reconciliation, a deposit recorded by the bank but not in the company's ledger Cash account is... a. added to both the bank balance and the ledger Cash account balance b. added to the…
Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due 31 to 60 $ 52,000 Accounts receivable Percent uncollectible Total 0 $ 650,000 $ 412,000 Req A Req B and C 2% Complete this question by entering your answers in the tabs below. 1 to 30 $ 106,000 a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. Estimated balance of allowance for uncollectibles 3% b. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $13,600 credit.
Compare Two Methods of Accounting for Uncollectible Receivables been obtained from the accounts: Required: Assemble the desired data. Enter a decrease in the amount of expense as a negative number and all other amounts as positive numbers. Call Systems Company Bad Debt Expense
1. From page 5-4 of the VLN, when using the percent of receivables method, the math of multiplying accounts receivable by the percent of uncollectible accounts directly calculates: Group of answer choices A. The ending balance of the allowance for uncollectible accounts. B. Bad debt expense C. Net accounts receivable D. The amount to use in the adjusting entry to recognize bad debt expense 2. From page 5-4 of the VLN, what is the appropriate amount to record for bad debt expense when the company records the adjusting entry on 12/31? 3. Using the data from page 5-4 of the VLN, assume that instead of having a $500 credit balance in the Allowance for Uncollectible Accounts (AUA), the company had a $600 credit balance in the account. How would that affect the ending balance in the AUA after the company prepared the adjusting entry and posted it to the AUA? Group of answer choices A. The higher balance before the adjusting entry would cause the ending balance in the AUA to…
To record estimated uncollectible accounts using the allowance method, the adjusting entry would be a A. debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts. O B. debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts. O C. debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable. O D. debit to Loss on Credit Sales and a credit to Accounts Receivable.
Select the best answer for the question. 10. A trial balance indicates that the debit total exceeds the credit total by $63. Which of the following errors is the most probable source of the discrepancy? A. An asset with a balance of $63 was mistakenly entered in the ledger as a credit for that amount instead of a debit B. An asset with a balance of $670 was mistakenly entered in the ledger as a $607 debit OC. A liability with a balance of $63 was mistakenly entered in the ledger as a debit for that amount, instead of a credit OD. A liability with a balance of $970 was mistakenly entered in the ledger as a $907 credit O Mark for review (Will be highlighted on the review page) Previous Question Next Question >>
Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicate the ending balance in each case. a. Credit balance of $300 in Allowance for Doubtful Accounts just prior to adjustment. Analysis of accounts receivable indicates uncollectible receivables of $8,500. Amount added $ Ending balance $ b. Credit balance of $500 in Allowance for Doubtful Accounts just prior to adjustment. Uncollectible receivables are estimated at 2% of credit sales, which totaled $1,000,000 for the year. Amount added $ Ending balance $
Select the best answer for the question 12. What account will be debited to record an accounts receivable amount considered to be a bad debt if the direct write-off method of accounting is used? O A. Cash OB. Allowance for Doubtful Accounts OC. Sales OD. Uncollectible Accounts Expense Mark for review (Will be highlighted on the review page) revious Questio Next Question >> Jm
If a $335.00 debit item in the general journal is posted as a credit: By how much will the trial balance be out of balance? Explain how you might detect such an error.
Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicate the ending balance in each case. a. Credit balance of $390 in Allowance for Doubtful Accounts just prior to adjustment. Analysis of Accounts Receivable indicates uncollectible receivables of $7,010. Amount added $fill in the blank 1 Ending balance $fill in the blank 2 b. Credit balance of $390 in Allowance for Doubtful Accounts just prior to adjustment. Uncollectible receivables are estimated at 3% of credit sales, which totaled $841,000 for the year. Amount added fill in the blank Ending balance
Required information [The following information applies to the questions displayed below.] Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due Total $570,000 1 to 30 $90,000 Over 90 $30,000 10% 31 to 60 61 to 90 Accounts receivable $396,000 $36,000 $18,000 7% 1% 2 % 5% Percent uncollectible a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4.5% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $12,000 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,000 debit. Complete this question by entering your answers in the tabs below.