Dynamic, Incorporated had credit sales of $645,000 for March. Accounts receivable of $12,000 were determined to be worthless and were written off during March. Accounts receivable total \$542,000 at March 31. Management feels that based on past experience, approximately 1% of net credit sales will prove to be uncollectible. Assuming Dynamic, Incorporated uses the income statement approach (an allowance method) to account for uncollectible accounts, impairment loss for March is: Multiple Choice 55,420 $17.420 518,450 . $6,450. Required information [The following information applies to the questions displayed below.] The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31. a. On July 31 , the company's Cash account has a $25,077 debit balance, but its July bank statement shows a $27,866 cash balance. b. Check No. 3031 for $1,680, Check No. 3065 for $616, and Check No. 3069 for $2,448 are outstanding checks as of July 31. c. Check No. 3056 for July rent expense was correctly written and drawn for $1,250 but was erroneously entered in the accounting records as $1,240. d. The July bank statement shows the bank collected $5,000 cash on a note for Branch. Branch had not recorded this event before receiving the statement. e. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF. f. The July statement shows a $8 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received. g. Branch's July 31 daily cash receipts of $6,132 were placed in the bank's night depository on that date but do not appear on the July 31 bank statement. Required: 1. Prepare the bank reconciliation for this company as of July 31. e. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF. f. The July statement shows a $8 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received. g. Branch's July 31 dally cash receipts of $6,132 were placed in the bank's night depository on that date but do not appear on the July 31 bank statement. Required: 1. Prepare the bank reconciliation for this company as of July 31. 2. Prepare the journal entries necessary to make the company's book balance of cash equal to the reconciled cash balance as of July 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 234567 Record the adjusting entry required, if any, related to the July 31 cash balance. Note: Enter debits before credits. 2. Prepare the journal entries necessary to make the company's book balance of cash equal to the reconciled cash balance as of July 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 4567 Record the adjusting entry required, if any, related to the outstanding checks. Note: Enter debits before credits, 2. Prepare the journal entries necessary to make the company's book balance of cash equal to the reconciled cash balance as of July 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 67> Record the adjusting entry required, if any, related to Check No. 3056. Note: Enter debits before credits. 2. Prepare the journal entries necessary to make the company's book balance of cash equal to the reconciled cash balance as of July 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 7 Record the adjusting entry required, if any, for the collection of the note by bank for Branch. Note: Enter debits before credits. 2. Prepare the journal entries necessary to make the company's book balance of cash equal to the reconciled cash balance as of July 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet
