Question
If you could answer all 3 that would be greatly appreciated, thanks 1. In the process of reconciling its bank statement for April, Donahue Enterprises'
If you could answer all 3 that would be greatly appreciated, thanks
1.
In the process of reconciling its bank statement for April, Donahue Enterprises' accountant compiles the following information:
Cash balance per company books on April 30 | $ | 6,210 |
Deposits in transit at month-end | $ | 1,430 |
Outstanding checks at month-end | $ | 750 |
Bank charge for printing new checks | $ | 110 |
Note receivable and interest collected by bank on Donahues behalf | $ | 640 |
A check paid to Donahue during the month by a customer is returned by the bank as NSF | $ | 610 |
The adjusted cash balance per the books on April 30 is:
-
$6,740
-
$6,130
-
$3,950
-
$5,710
-
$8,030
2.
Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to the ending inventory using FIFO.
Date | Activities | Units Acquired at Cost | Units Sold at Retail |
May 1 | Beginning Inventory | 250 units @ $10 | |
5 | Purchase | 270 units @ $12 | |
10 | Sales | 190 units @ $20 | |
15 | Purchase | 150 units @ $13 | |
24 | Sales | 140 units @ $21 | |
-
$4,100
-
$3,460
-
$3,590
-
$3,860
-
$4,230
3.
A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts:
Accounts receivable | $ | 348,000 | debit |
Allowance for uncollectible accounts | 670 | debit | |
Net Sales | 793,000 | credit | |
All sales are made on credit. Based on past experience, the company estimates 0.5% of net credit sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
-
Debit Bad Debts Expense $3,295; credit Allowance for Doubtful Accounts $3,295.
-
Debit Bad Debts Expense $4,635; credit Allowance for Doubtful Accounts $4,635.
-
Debit Bad Debts Expense $2,410; credit Allowance for Doubtful Accounts $2,410.
-
Debit Bad Debts Expense $1,740; credit Allowance for Doubtful Accounts $1,740.
-
Debit Bad Debts Expense $3,965; credit Allowance for Doubtful Accounts $3,965.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started