A. What is a bank reconciliation and why is it important for companies to do it periodically?

B. Prepare a Bank Reconciliation Statement for XYZ company that has:

Bank statement of $10,000.

• Cash account of $8,500.

Additional information for the reconciliation:

Deposit in transit.

NSF Check.

Outstanding check.

Collections made by the bank.

Bank error

Books error

Required: provide an amount of each information to bring the adjusted balances to be equal.

Q2-

Assume that you have a company. And the management estimates that 5% of sales will be uncollectible.

Give any amount of sales and prepare the journal entry using the percent of sales method.

Q3 A company that uses a perpetual inventory system made the following cash purchases and sales. There was no beginning inventory.

January 1:	Purchased 40 units at SAR10 per unit
February 5:	Purchased 40 units at SAR 12 per unit
March 16:	Sold 50 Units for SAR 15 per unit

A.Prepare general journal entries to record the March 16 sale using the

1. FIFO inventory valuation method.

2. LIFO inventory valuation method.

what is the gross margin for each method?