Question
1. The ending balance on the bank statement for June is $1,425.33. The company has outstanding cheques of $263.35, outstanding deposits of $729.61, and incurred
1. The ending balance on the bank statement for June is $1,425.33. The company has outstanding cheques of $263.35, outstanding deposits of $729.61, and incurred bank service fees of $12.00 during the month. The adjusted cash balance for the company as at June 30 is
a. $947.07.
b. $1,891.59.
c. $1,879.59.
d. $1903.59.
2. Bailey Inc.'s books revealed the following data for 2020 after all adjustments were made:
Cash sales | $825,000 |
Sales returns (on credit sales) | 35,000 |
Allowance for doubtful accounts (credit balance) | 3,800 |
Credit sales | 575,000 |
Accounts receivable | 168,000 |
Bailey estimates bad debt expense based on 2% of net credit sales. The bad debt expense for 2020 was
a. $10,800
b. $11,500
c. $14,600
d. $3,360
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