1).

An aging of Calypso Company's accounts receivable indicates that $40,000 is estimated to be uncollectible. If Allowance for Doubtful Accounts has a $6,000 credit balance, the adjustment to record bad debts for the period will require a:

A)	Debit to Bad Debts Expense for $34,000

B)	Debit to Allowance for Doubtful Accounts for $34,000

C)	Debit to Bad Debts Expense for $40,000

D)	Credit to Allowance for Doubtful Accounts for $40,000

2)

After completing a bank reconciliation, you are preparing journal entries to agree the Moving Companys Cash account balance with the reconciled balance shown on the reconciliation. Which of the following requires a journal entry?

A)	Outstanding checks at the end of the period

B)	An NSF check

C)	Deposits in transit at the end of the period

D)	An error by the bank in recording one of the firm's deposits