Problem 2 Bank Reconciliation #2

The bank statement for the checking account of Youve Got Nail (YGN) showed a December 31, 2016, balance of $14,632.12. Information that might be useful in preparing a bank reconciliation is as follows:

1. Outstanding checks were $1,320.25
2. The December 31, 2016, cash receipts of $575 were not deposited in the bank until January 2, 2017.
3. One check written in payment of rent for $246 was correctly recorded by the bank but was recorded by Youve Got Nail as a $264 disbursement.
4. In accordance with prior authorization, the bank withdrew $450 directly from the checking account as payment on a mortgage note payable. The interest portion of that payment was $350. Youve Got Nail has made no entry related to this automatic payment.
5. Bank service charges of $14 were listed on the bank statement.
6. A deposit of $875 was recorded by the bank on December 13, but it did not belong to Youve Got Nail. The deposit should have been made to the checking account of Youve Got Mail.
7. The bank statement included a charge of $85 for an NSF check. The check was returned with the bank statement and the company will seek payment from the customer.
8. According to instructions from Youve Got Nail on December 30, the bank withdrew $10,000 from the account and purchased US Treasury Bills for the company. Youve Got Nail recorded the transaction in its books on December 31 when it received notice from the bank.

Prepare the bank reconciliation for Youve Got Nail at December 31, 2016. You will have to compute the balance per books.

2. Uncollectible Accounts Receivable

Two journal entries used related to uncollectible accounts receivable:

Net Accounts Receivable