Class Exercise- Chapter 7 Shown below is the information needed to prepare a bank for Warren Electric at December 31 1. At December 31, cash per the bank statement was Question 1 $15,200; cash per the company's records was $17,500. 2. Two debit memoranda accompanied the bank statement: service charges for December or s25, and a $775 check drawn by Ja marked "NSF." 3. Cash receipts of $10,000 on December 31 were not deposited unti January 4 4. The following checks had been issued in December but were not included among the paid checks returned by the bank: no. 620 Tf $1,000, no. 630 for $3,000, and no. 641 for $4 a. Prepare a bank reconciliation at December 31. b. Prepare the necessary journal entry or entries to update the accounting records. Question 2 The credit manager of Montour Fuel has gathered the following information about the company's accounts receivable and credit losses during the current year: Net credit sales for the year. Accounts receivable at year-end.. Uncollectible accounts receivable: $8,000,000 1,750,000 Actually written off during the year...$96,000 Estimated portion of year-end receivables expected to prove uncollectible (per aging schedule.. 84,000 180,000 Prepare one journal entry summarizing the recognition of Impairment Loss of Receivable for the entire year under each of the following independent assumptions: a. Impairment Loss of Receivable is estimated at an amount equal to 2.5% of net credit sales. b. Impairment Loss of Receivable is recognized by adjusting the balance in the Allowance for Impairment to the amount indicated in the year-end aging schedule. The balance in the Allowance for Impairment at the beginning of the current year was $25,000 (Consider the effect of the write-offs during the year on the balance in the Allowance for Impairment.)