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PROBLEM #2 Castillo Inc. Presents the following information in its Statement of Situation - Partial Balance Sheet: Accounts Receivables - Trade. Balance - $637,350; Allowances

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PROBLEM \#2 Castillo Inc. Presents the following information in its Statement of Situation - Partial Balance Sheet: Accounts Receivables - Trade. Balance - $637,350; Allowances for Uncollectibles $60,550; Receivable Notes $126,000. Total $702,800. Related transactions for 2020 : Journalize in the space provided. 1. Of the Accounts Receivables - Trade in circulation $483,000 were collected. Of this amount, $210,000 was filed on 2/10,n/30. The discount was honored. Make the necessary wage entry(s). 2. During the month of November 2022, it was agreed to remove Mengano de Tal's client from the accounting books for $25,000 of the Accounts Receivables - Trade. A month later, Mengano de Tal paid the $25,000. Make entries for deletion and those necessary to restore it and make and record customer payment 3. Another $61,250 of the Accounts Receivables - Trade was eliminated once again with prior authorization from the head of accounting for several clients. These are: Joe Doe $11,250, Mary Doe $25,000 and Bob Doe the remainder. Make a note of the required entruicl in the inurnal 4. At the end of the year, Castillo understands that the Allowances for Uncollectibles must be $70,000. I recommend using a T account. Write down the necessary entry(s) in the PROBLEM \#3 Required for the next exercise: 1. Prepare the bank reconciliation, in the space provided 2. Necessary wage entries in the space provided Bank reconciliation and necessary entries for Castillo Inc.; for the month of July 2022. Data: Related to the Bank 1. Balance in the bank as of June 30$30,691.50 2. Recognized deposits $98,000 3. Collections by the bank for Castillo $3,255. Of this amount, $105 represents the interest earned on the note to Castillo. 4. Checks paid totaling $109,025. 5. Bank charges $94.50 6. You must calculate the balance as of July 31 of the bank, with the given data. Point. Data: Related to Castillo 1. Balance as of June 30 according to books $30,975. 2. Deposits during June $108,500 3. Checks made during June $111,422.50 Other Information 1. Deposits in transit July $10,500 2. Checks in circulation $2,975. 3. Cash on hand at $861.00 Required: 1. Make Journal entry to estimate Bad Debts assuming allowance for bad debts based on; a. 4% of the Gross Accounts Receivable (Gross Accounts Receivables). Y b. 5% of the Accounts Receivable (Gross Accounts Receivables) and a balance of $3,400 in the account: Provision for Bad Accounts Allowances for Uncollectible

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