Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

8. The entry to record a write-off of an uncollectible account when using the direct write off method involves a debit to Allowance for Bad

image text in transcribed
8. The entry to record a write-off of an uncollectible account when using the direct write off method involves a debit to Allowance for Bad Debts b. debit to Accounts Receivable e. credit to Cash 9. A copy machine costs $45,000 when new and has accumulated depreciation of $44,000. Suppose your company sold the machine for $1,000. What is the result of the disposal transaction a. No gain no loss c. Gain of $1,000 10. Your company liability does the sales create? a Sales revenue of $194,400 d. debits to Bad Debts Expense b. Loss of $1,000 d. Loss of $45,000 sells S 180.000 (selling price) of goods .nd collects sales of tax of 8% what current . Unearmed Revenue of $194,400 c. Sales tax payable of $14,400. dSales revenue of $1 80,000 IL (20) The December cash record of ABB Insurance follow Cash Debit Check No. Cash Credit Dee 3 $ 4,150 2416 5 850 16 2418 2,190 1,870 31 2420 2422 ABB Insurance's cash account shows a balance of $16,650 at December 31. On December 31, the company received the following bank statement Bank Statement for December Beginning Balance $14,000 NSF S 700 850 400 160 670 1,960 10 EFT S 400 Dec. 2 11 Check NO. 2416 19 22 Check NO. 2417 29 Check NO. 2418 31 Check NO. 2419 4,150 EFT 16 24 25 BC 560 2,190 1,700 Sc Ending Balanc$18,590 Notes: BC-bank collection; EFT-electronic funds transfer, NSE-nonsufficient funds check sc-service charge Additional data for the bank reconciliation follows: a. The EFT credit was a receipt of rent. The EFT debit was an insurance payment b. The NSF check was received from a customer named Dunlap Chemical. c. The $1,700 bank collection was for a note receivable. d. The correct amount of Check 2419 for rent expense is $1,940 instead of $1,490 on cash records 1) Prepare the bank reconciliation for ABB Insurance as at December 31. 2) Journalize any required entries from the bank reconciliation

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions