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a) The following bank statement was received. Prepare a bank reconciliation for May: b) Prepare the appropriate adjusting entries on May 31, 2015. Hint: Some
a) The following bank statement was received. Prepare a bank reconciliation for May:
b) Prepare the appropriate adjusting entries on May 31, 2015. Hint: Some additional information is provided below but where else might you look to find details relevant to preparing the adjusting entries?
- It is estimated that utilities used during May totalled $25,315.
- Actual count of ending merchandise inventory on May 31, 2015 was $2,152,117.
- Management estimates uncollectible accounts receivable based on the following rates of uncollectibility applied to outstanding accounts: Not yet due (2%), 1-30 days past due (9%), 31-60 days past due (18%), Greater than 61 days past due (60%). Since this is an estimate please round your final answer to the nearest whole dollar.
- Income taxes are estimated to be $259,400.
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