Question
11B. Calculate the true cash balance. (LO 1). Use the following information to calculate the true reconciled cash balance: Bank statement shows interest earned for
11B. Calculate the true cash balance. (LO 1). Use the following information to calculate the true reconciled cash balance:
Bank statement shows interest earned for month $50 Bank statement shows service charges for month $10 Book shows deposits in transit $75 Book shows outstanding checks $25 Balance per Books Bank $100 $90 Interest earned for month __________________ Service charges for month ____________________ Deposits in transit ______________________ Outstanding checks ____________________ Balance ________________________ True cash balance ______________
What is the companys true cash balance at April 30?
13B. Determine bad debts expense using the percentage of sales method. (LO 3). Following
are the 2010 year-end balances before adjustments:
Accounts receivable (AR) $ 80,000
Allowance for uncollectible accounts $ (2,000)
Net sales $250,000
Using the percentage of sales method, the company estimates 3% of sales will become uncol-
lectible. What is the bad debts expense for 2010? What will be the net realizable value of accounts
receivable on the year-end balance sheet?
14B. Determine bad debts expense using the accounts receivable method. (LO 3). Carpet
Emporium ended its first year with $300,000 of accounts receivable and estimates that 2% of that
amount will never be paid. No account has been specifically identified as non-paying at the date
of the year-end balance sheet. What will the income statement for the year show as the bad debts
expense if Carpet Emporium uses the allowance method of accounting for bad debts?
15B. Write off uncollectible accounts. (LO 3). Building Supplies Corporation has deter- mined that a customer
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