2.......In preparing its August 31 bank reconciliation, Reinstein Corp. has available the following balance per books and reconciling items:

Balance per bank statement, 8/31/15	$18,050
Outstanding checks, 8/31/15	3,250
Return of customer's check for insufficient funds, 8/31/15	600
Deposit in transit, 8/31/15	2,750
Bank service charges for August	100

The 8/31 correct balance of cash is:

Select one:

a. $19,250

b. $19,050

c. $17,350

d. $17,850

e. $17,450

3.....When the allowance method of recognizing uncollectible accounts is used, what is the net effect of a collection of an account previously written off on gross Accounts Receivable and Bad Debt Expense, respectively?

Select one:

a. Increase, Decrease

b. Increase, No Effect

c. No Effect, Decrease

d. No Effect, Increase

e. No Effect, No Effect