D1 A 1 B Question 4-Cash and Receivables (14 marks) E F G H 2 Please only enter your response in the blue cells. This is the only area that will be graded. 3 4 a) Bank Reconciliation (8 marks) 6 5 Blackjack Corp.'s book balance of the cash account shows an unadjusted balance of $15,500 before reconciliation. The following data was also available: A customer's cheque for $650 was recorded on the books as $560. 7 The bank statement does not include a deposit of $3.500 made on the last day of the month. The bank statement shows a collection of a note receivable by the bank of $1,270 and a customer's cheque for $70 was returned because it was NSF. 10 11 Required: 12 1. Calculate the correct balance in the cash account. (Note: you only need to do the book side of the bank rec.) (6 marks) 13 14 15 16 17 18 19 20 Item Amount 21 22 2. Prepare the journal entry needed to adjust the books for the returned NSF cheque described above. (2 marks) 23 24 Date 25 Month end Account Titles Debit Credit DELTA.CC 31 b) Accounts Receivable (6 marks) 32 33 1. Blues Corp. has a period end unadjusted trial balance that includes the following: 34 35 Accounts receivable 36 Allowance for doubtful accounts (AFDA) 37 Sales 38 Sales returns and allowances 39 40 Required: Dr. Cr. 240,000 1.500 425.000 9,000 41 Determine the period end adjusting journal entry necessary, when the estimate of uncollectible amounts 42 is based on 3% of gross receivables. (4 marks) 43 44 45 46 47 48 49 Date 31-Dec Account Titles Debit Credit 58 59 2. When is the direct write-off method of accounting for the impairment of receivables acceptable? (2 marks) 60 61 62 63 68 33369 64 65 66 67 69