1. In preparing its bank reconciliation for the month of February, Jesse Company has available the following information: Balance per bank statement, February 28 Deposit in transit, February 28 Outstanding checks, February 28 Check erroneously deducted by bank from Jesse's account, February 10 Bank service charges for February $20,025 3,125 2,875 25 25 What is the corrected cash balance at February 28? A) $20,300 B) $20,025 C) $20,175 D) $20,050 2. Deuce Company uses the allowance method to estimate losses from uncollectible receivables. Net sales for the year are $120,000, and the company estimates its bad debts as 1 percent of net sales. If there is already a $1,200 debit balance in Allowance for Bad Debts, how much should be recorded as Bad Debt Expense? A) No entry is required B) $2,400 C) $1,200 D) $24,000 3. A method of estimating bad debts that focuses on the balance sheet rather than the income statement is the allowance method based on A) Specific accounts determined to be uncollectible B) Aging the accounts receivable C) Direct write-off D) Credit sales 4. You have just analyzed customers' accounts receivable through an "aging" process and have determined that $3,000 of the accounts receivable are probably uncollectible. Noting that your trial balance shows an Allowance for Bad Debts with a debit balance of $100, what is the correct adjusting entry? A) Allowance for Bad Debts 3,000 Bad Debt Expense 3,000 B) Bad Debt Expense 2,900 Allowance for Bad Debts 2,900 C) Bad Debt Expense 3,100 Allowance for Bad Debts 3,100 D) Allowance for Bad Debts 3,100 Bad Debt Expense 3, 100 5. Bad Debt Expense is classified as a(n) A) Other expense B) Administrative expense C) Cost of sales expense D) Selling expense