1 Fourth Test Acc 122 Show all of your work 1. Prepare a bank reconciliation for Summer Corp. Balance per Summer Company books $500,000 Balance per Citi bank $510,000 Reconciling items Outstanding Checks $40,000 Nonsufficient funds Check $10,000 Deposits in transit $19,000 Bank Fees $1,000 2 2. Gemma's Gowns sells gowns in Tampa, Florida. Gemma's uses the perpetual inventory system. Required: Record the following transactions in the Journal. 7-1: Gemma's Gowns purchased a gown for $40,000 on account from Vera Wang. The payment terms are 2/10/N/30. The delivery terms are FOB shipping point. 7-2: Gemma's pays the delivery charges in cash, $2,000. 7-7: Gemma's Gowns pays the accounts payable in cash. 7-15: Winter Washington purchases the gown for $60,000 cash. 3 3. The Autumn Company began business on January 1, 2024. It calculates uncollectible accounts receivable using the percent of accounts receivable method. Required: Record the entries to account for Accounts Receivable. 12-31-24: Autumn Company has a balance of $900,000 in accounts receivable and estimates 10% uncollectible. 7-10-25: Autumn Company writes off Rose's accounts receivable of $97,000. This accounts receivable was outstanding on 12-31-24. 12-31-25: Autumn has a balance of $800,000 in accounts receivable and estimates 10% uncollectible. 4 4. Hallie's Hats uses the Periodic Inventory System. Summer's Skirts made the following purchases during the year: Date # of Units Cost per Unit Total Cost 1-1 100,000 $5 $ 500,000 3-1 200,000 $6 $1,200,000 6-1 150,000 $7 $1,050,000 Total 450,000 $2,750,000 400,000 units were sold during the year, and 50,000 remained in the Ending inventory. Required: Calculate the Cost of Goods Sold and Ending Inventory under the First-in-First-out Method, The Last-in-First-out Method, and the Weighted Average Method. 5 5. The Rock Company uses the percentage of Credit sales method to estimate uncollectible accounts receivable. Record: the entries to account for accounts receivable 12-31-24: The Rock Company has credit sales of $200,000 for 2024. They estimate that 10% of credit sales will be uncollectible. 5-2-25: The Rock Company writes off Pebble's accounts receivable for $15,000. This accounts receivable was outstanding on 12-31-24. 12-31-25: The Rock Company has credit sales of $300,000 for 2025. It estimates that 10% of credit sales will be uncollectible.