Based on the aging schedule prepared above: a. Determine the value of the uncollectible accounts (2 marks) b. Prepare the adjusting entry in journal form to record the bad debt expense for the period. The company's Allowance for Doubtful Accounts has a credit balance of $7,040 prior to the calculation in (a) above. (2 marks) c. One of the customers in the over 180 days due went out of business so you have decided to write-off $1,000. Prepare the journal entry to write off this account. (2 marks) d. The accounting assistant was able to make contact with a client whose account was previously written off for $800. Prepare the journal entry to record this collection. (4 marks) Part 3: Chef Z Inc. is thinking of buying a van that will be used only for business. The cost of the van is estimated at $36,500. Chef Z Inc. would spend an additional $2,500 to have the van painted. In addition, Chef Z Inc. wants the back seat of the van removed so that they will have lots of room to transport all the food for the catering events. The cost of taking out the back seat and installing shelving units is estimated at $1,500. They expect the van to last about 5 years. The annual cost of vehicle insurance will be $2,400. Chef Z Inc. estimates that at the end of the 5-year useful life the van will sell for $7,500. Assume that they will buy the van on August 15, 2020, and it will be ready for use on September 1, 2020. Chef Z Inc. is concerned about the impact of the van's cost on her income statement and balance sheet. They have come to you for advice on calculating the van's depreciation. Instructions (a) Determine the cost of the van. (2 marks) (b) Prepare depreciation schedules for the first 3 years using the following methods: 1) straight-line depreciation 2) double-declining balance depreciation. (6 marks) What is the accumulated depreciation figure Chef Z Inc. will record in the Statement of financial position in the 3rd year under the straight-line and double declining methods? (2 marks) Determine the following: a. The cost of goods sold and ending inventory under the FIFO Cost Flow Assumption (8 marks) b. The cost of Goods sold and ending inventory under the moving average cost flow assumption (8 marks) c. Determine the Gross Profit for each of the FIFO and Moving Average Cost Methods. (4 marks) Question 3 - Bank Reconciliation, Accounting for Receivables and Depreciation Part 1: The following information was capture to complete the Bank Reconciliation for Chef Z Inc. as at June 30, Beginning Cash Balance: $3,224 Beginning Bank Balance: $3,359 Additional information: 1. On May 31, there were two outstanding checks: #595 for $238 and #599 for $297. 2. Barclays Bank made a posting error to the bank statement: check #603 was issued for $425, not $452. 3. The deposit made on June 20 was for $125 that chef Z Inc. received for teaching a class. The accounting assistant made an error in recording this transaction as $155 4. The electronic funds transfer (EFT) to AT&T for $85 was payment for Chef Z Inc. telephone bill via online banking. 5. The NSF check of $100 and $35 NSF bank charge was from Ron Black. Chef Z Inc. received this check for teaching a class to Ron's children. Chef Z Inc. contacted Ron, and he assured Chef Z Inc. that they will receive a check in the mail for the outstanding amount of the invoice and the NSF bank charge. 6. Deposit in Transit $110 7. Bank Service Charge $13.00 Instructions (a) Prepare Chef Z Inc. bank reconciliation for June 30. (6 marks) (b) Prepare any necessary adjusting entries in journal form at June 30. (3 marks) (c) If a statement of financial position is prepared for Chef Z Inc. at June 30, what balance will be reported as cash in the current assets section? (1 mark) Part 2: After 6 months of operation, and a closer look of its outstanding accounts receivable, you decide to prepare an aging schedule of its accounts receivable for Chef Z Inc. Age Schedule Balance Uncollectible Not yet due 350,000.00 1% 1-30 days past due 90,000.00 3% 31-60 days past due 17,000.00 6% 61-90 days past due 13,000.00 10% 91-80 days past due 9,400.00 60% Over 180 days past due 3,600.00 80%