Accounting Lab and for screenshot 2.36.13 prepare a bank reconciliation
Use the following information about Ringo Corporation to answer the next four questions. The Accounts Receivable balance for Ringo Corporation is $200,000 at May 31, 2020. Before calculating and recording May 2020 bad debt expense, the Allowance for Doubtful Accounts has a debit balance of $9,800. Net sales for the month are $1,160,000. An aging of accounts receivable results in a $14,000 estimate for the Allowance for Doubtful Accounts as of May 31, 2020. In the past several years, 2% of net sales have proven uncollectible. 1. If Ringo uses the analysis of receivables method, Bad Debt Expense on the May 2020 Income Statement will be: a. $23,800. b. $23,200. c. $14,000. d. $13,400 2. If Ringo uses the analysis of receivables method, the Allowance for Doubtful Accounts reflected on the May 31, 2020 Balance Sheet will be a. $23,800. b. $23,200. C. $14,000. d. $13,400. 3. If Ringo uses the percent of sales method, Bad Debt Expense on the May 2020 Income Statement will be: a. $23,800. b. C. $14,000. d. $13,400 4. If Ringo uses the percent of sales method, the Allowance for Doubtful Accounts reflected on the May 31, 2020 Balance Sheet will be: a. $23,800. b. $23,200. C. $14,000. d. $13,400.5. The matching rule, applied under the allowance method, relates to losses from credit sales by stating that Bad Debt Expense should be recorded: a. in the period of the sale. b. in the period of the loss. c. for an exact amount d. in the same period as allowed for tax purposes. 6. Suppose that Microsoft sells $4,000,000 of its Xbox 360 game to a Micro Center. Micro Center signs a promissory note that has the following terms: annual interest rate of 5% and principal plus interest due in 3 months. Assuming receivable? that Micro Center repays the entire amount as scheduled after 3 months, what is the Maturity Value of this note a. $4,000,000 b. $4,050,000 . $4,200,000 d. $4,600,000 7. A $10,000, 90-day, 4% note was received on May 4 and that the fiscal year ended on May 31. Interest will be paid by the borrower on the maturity date of the note. The adjusting entry to record the accrued interest revenue as of May 31 would be (amounts rounded to nearest dollar, use 360-day year) a. Debit Interest Receivable 30; Credit Interest Revenue 30 b. Debit Cash 100; Credit Interest Revenue 100 c. Debit Interest Receivable 120; Credit Interest Revenue 120 d. Debit Interest Revenue 120; Credit Interest Revenue 120Vinci, Inc.'s auditor observes the following related to Vinci's Cash account balance as of 5/31/20. Use this information to prepare a bank reconciliation for Vinci, Inc. Vinci, Inc.'s 5/31/20 Cash T account shows a balance of $452,000. Vinci, Inc.'s bank statement dated 5/31/20 shows a balance of $460,000. Vinci, Inc. incorrectly recorded a credit to Cash for $3,400 on a check that it wrote for $4,300. Vinci, Inc. has deposits of $36,000 that do not yet appear on the bank statement. Vinci, Inc. has not yet recorded bank fees of $800. The bank reports that one of Vinci, Inc.'s customer's check was returned NSF. The check was in the amount of $12,800. Vinci, Inc. has not yet reflected this NSF check in its Cash balance. . The bank accidentally recorded one of Vinci's $16,000 deposits twice. Vinci, Inc. has written $48,000 worth of checks that have not yet cleared the bank. Vinci, Inc. has not yet recorded $3,000 of interest revenue related to the bank account. Vinci, Inc. wrote a check and forgot to post the related journal entry to the T accounts. The journal entry that Vinci, Inc. forgot to post was: Dr. Inventory 8,500 and Cr. Cash 8,500. Vinci, Inc. Bank Reconciliation As of 5/31/20 Balance per bank, 5/31/20 Balance per books, 5/31/20 Adjusted bank balance, 5/31/20 Adjusted books balance, 5/31/20The Accounts Receivable balance for Bach Consulting is $4,400,000 as of May 31, 2020. Before calculating and recording the month's bad debt expense, there is a credit balance in the Allowance for Doubtful Accounts of $80,000. The May 2020 net sales were $30,000,000. In the past several years, 1% of net sales have prover uncollectible. An aging of accounts receivable results in a $360,000 estimate for the Allowance for Doubtful Accounts as of May 31, 20 PART A: PERCENT OF SALES METHOD Assume that Bach Consulting uses the percent of sales method to estimate future uncollectible accounts. What adjusting entry does Bach make to record May 2020 Bad Debt Expense? . What is "Accounts Receivable, net" on Bach's May 31, 2018 Balance Sheet? $ . What is "Bad Debt Expense" on Bach's May 2020 Income Statement? $_ PART B: ANALYSIS OF RECEIVABLES METHOD Assume that Bach Consulting instead uses the analysis of receivables method to estimate future uncollectible accounts What adjusting entry does Bach make to record May 2020 Bad Debt Expense? . What is "Accounts Receivable, net" on Bach's May 31, 2018 Balance Sheet? $ . What is "Bad Debt Expense" on Bach's May 2020 Income Statement? $Problem 3 (13 points) Use PVH Corp.'s financial statement information to answer the following questions. a. Provide the following account balances for PVH (4 points): February 4, 2018 January 29, 2017 Accounts Receivable (gross) Allowance for Doubtful Accounts Accounts Receivable, net b. Which of the above numbers represents the amount of its February 2, 2020 Accounts Receivable balance that PVH expects to collect in the subsequent year(s)? (1 point) c. Which of the above numbers represents that amount that PVH believes it will not collect from its customers as of February 2, 2020? (1 point) d. Which of the above numbers represents the total amount PVH is owed by customers as of February 2, 2020? (1 point) e. Provide the journal entry (both accounts and amounts) that PVH must have made to record its estimate of Bad Debt Expense in fiscal year 2019. (3 points) f. Provide the journal entry (both accounts and amounts) that PVH must have made to record Accounts Receivable writeoffs in fiscal year 2019. (3 points)
