Bank reconciliation adjustment Refer to Mini-Exercise 5.1. Required: a. Show the reconciling items in a horizontal model, or write the adjusting journal entry (or entries) that should be prepared to reflect the reconciling items for Happ, Inc., at September 30. b. What is the amount of cash to be included in the September 30 balance sheet for the companys bank account?

Mini-Exercise 5.3 LO 5

Accounts receivable, bad debts, credit sales, and cash collections analysis At the beginning of the year, accounts receivable were $72,000 and the allowance for bad debts was $5,750. During the year, sales (all on account) were $300,000, cash collections were $290,000, bad debts expense totaled $7,100, and $6,000 of accounts receivable were written off as bad debts.

Required: Calculate the balances at the end of the year for the Accounts Receivable and Allowance for Bad Debts accounts. (Hint: Use T-accounts to analyze each of these accounts, plug in the amounts that you know, and solve for the ending balances.)