Problem 1 (12 points) Vinci, Inc.'s auditor observes the following related to Vinci's Cash account balance as of 5/31/20. Use this information to prepare a bank reconciliation for Vinci, Inc. . Vinci, Inc.'s 5/31/20 Cash T account shows a balance of $452,000. Vinci, Inc.'s bank statement dated 5/31/20 shows a balance of $460,000. Vinci, Inc. incorrectly recorded a credit to Cash for $3,400 on a check that it wrote for $4,300. Vinci, Inc. has deposits of $36,000 that do not yet appear on the bank statement. Vinci, Inc. has not yet recorded bank fees of $800. The bank reports that one of Vinci, Inc.'s customer's check was returned NSF. The check was in the amount of $12,800. Vinci, Inc. has not yet reflected this NSF check in its Cash balance. The bank accidentally recorded one of Vinci's $16,000 deposits twice. Vinci, Inc. has written $48,000 worth of checks that have not yet cleared the bank. Vinci, Inc. has not yet recorded $3,000 of interest revenue related to the bank account. Vinci, Inc. wrote a check and forgot to post the related journal entry to the T accounts. The journal entry that Vinci, Inc. forgot to post was: Dr. Inventory 8,500 and Cr. Cash 8,500. Vinci, Inc. Bank Reconciliation As of 5/31/20 Balance per bank, 5/31/20 Balance per books, 5/31/20 Adjusted bank balance, 5/31/20 Adjusted books balance, 5/31/20 Problem 2 (11 points) The Accounts Receivable balance for Bach Consulting is $4,400,000 as of May 31, 2020. Before calculating and recording the month's bad debt expense, there is a credit balance in the Allowance for Doubtful Accounts of $80,000. The May 2020 net sales were $30,000,000. In the past several years, 1% of net sales have proven uncollectible. An aging of accounts receivable results in a $360,000 estimate for the Allowance for Doubtful Accounts as of May 31, 2020. PART A: PERCENT OF SALES METHOD Assume that Bach Consulting uses the percent of sales method to estimate future uncollectible accounts. What adjusting entry does Bach make to record May 2020 Bad Debt Expense? . What is "Accounts Receivable, net" on Bach's May 31, 2018 Balance Sheet? $_ . What is "Bad Debt Expense" on Bach's May 2020 Income Statement? $ PART B: ANALYSIS OF RECEIVABLES METHOD Assume that Bach Consulting instead uses the analysis of receivables method to estimate future uncollectible accounts. What adjusting entry does Bach make to record May 2020 Bad Debt Expense? What is "Accounts Receivable, net" on Bach's May 31, 2018 Balance Sheet? $ What is Bad Debt Expense" on Bach's May 2020 Income Statement? $