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9. The Cash general ledger account balance of Murphy Inc. was $2,531 at December 31, 2020. On this same date, the bank statement had a
9. The Cash general ledger account balance of Murphy Inc. was $2,531 at December 31, 2020. On this same date, the bank statement had a balance of $1,500. The following discrepancies were noted: a. A deposit of $1,000 was made on December 31, 2020 was not yet recorded by the bank on the December statement. b. A customer's cheque amounting to $700 and deposited on December 15 was returned NSF with the bank statement. c. Cheque # 89 for office supplies expense, correctly made out for $125 and cleared the bank for this amount, was recorded in the company records incorrectly at $152. d. $20 for December service charges were recorded on the bank statement but not in the company records. e. A cancelled cheque for $250 belonging to WKZ Ltd. but charged by the bank to Murphy Inc. was included with the cancelled cheques returned by the bank. f. There were $622 of outstanding cheques at December 31. g. The bank collected a net amount of $290: $250 regarding a note receivable, interest revenue of $50, and a $10 service charge that also is not included in the company records. Instructions Prepare a bank reconciliation and record all necessary adjusting entries at December 31, 2020. 10. Sammon Inc. had the following unadjusted account balances at May 31, 2021 (assume normal account balances): Accounts Receivable $147,000 Allowance for Doubtful Accounts Sales 3,000 750,000 Instructions a. Assume that Sammon Inc. estimated its uncollectible accounts at May 31, 2021 to be 2% of sales. i. Prepare the appropriate adjusting entry to record the estimated uncollectible accounts at May 31, 2021. ii. Calculate the balance in the Allowance for Doubtful Accounts account after posting the adjusting entry. b. Assume that Sammon Inc. estimated its uncollectible accounts at May 31, 2021 to be 10% of the unadjusted balance in Accounts Receivable. i. Prepare the appropriate adjusting entry to record the estimated uncollectible accounts at May 31, 2021. ii. Calculate the balance in the Allowance for Doubtful Accounts account after posting the adjusting entry. 9. The Cash general ledger account balance of Murphy Inc. was $2,531 at December 31, 2020. On this same date, the bank statement had a balance of $1,500. The following discrepancies were noted: a. A deposit of $1,000 was made on December 31, 2020 was not yet recorded by the bank on the December statement. b. A customer's cheque amounting to $700 and deposited on December 15 was returned NSF with the bank statement. c. Cheque # 89 for office supplies expense, correctly made out for $125 and cleared the bank for this amount, was recorded in the company records incorrectly at $152. d. $20 for December service charges were recorded on the bank statement but not in the company records. e. A cancelled cheque for $250 belonging to WKZ Ltd. but charged by the bank to Murphy Inc. was included with the cancelled cheques returned by the bank. f. There were $622 of outstanding cheques at December 31. g. The bank collected a net amount of $290: $250 regarding a note receivable, interest revenue of $50, and a $10 service charge that also is not included in the company records. Instructions Prepare a bank reconciliation and record all necessary adjusting entries at December 31, 2020
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