a. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $550 credit. c. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a S300 debit. The following information is available for the Avisa Company for the month of November. On November 30, after all transactions have been recorded, the balance in the company's Cash account has a balance of $27,202. b. The company's bank statement shows a balance on November 30 of $29.279. C. Outstanding checks at November 30 include check #3030 in the amount of $1.525 and check #3556 in the amount of S1,459. d. Acredit memo included with the bank statement indicates that the bank collected $780 on a noninterest-bearing note receivable for Avisa. The bank deducted a Sio collection fee, and credited the remainder of $770 to Avisa's account. e. A debit memo included with the bank statement shows a $67 NSF check from a customer, J. Brown f. A deposit placed in the bank's night depository on November 30 totaled $1,675, and did not appear on the bank statement. . Examination of the checks on the bank statement with the entries in the accounting records reveals tha check #3445 for the payment of an account payable was correctly written for $2.450, but was recorded i the accounting records as $2,540. h. Included with the bank statement was a debit memorandum in the amount of $25 for bank servi charges. It has not been recorded on the company's books. Prepare the November bank reconciliation for the Avisa Company. Leonard Matson completed these transactions during December of the current year: Dec. 1 Began a financial services practice by investing $15,000 cash and office equipment havis $5,000 value. 2 Purchased $1,200 of office equipment on credit. 3 Purchased $300 of office supplies on credit. Completed work for a client and immediately received a payment of $900 cash. Completed work for Acme Loan Co. on credit, $1,700. Paid for the supplies purchased on credit on December 3. ! Paid for the annual $960 premium on an insurance policy. 18 Received payment in full from Acme Loan Co. for the work completed on Dec 8. 27 Leonard withdrew $650 cash from the practice to pay personal expenses. 30 Paid $175 cash for the December utility bills. 50 Received $2.000 from a client for financial services to be rendered next year. Prepare general journal entries to record these transactions. 8 10 14
