Required information

Use the following information for the Exercises 9-10 below. (Algo)

[The following information applies to the questions displayed below.]

At year-end December 31, Chan Company estimates its bad debts as 0.70% of its annual credit sales of $745,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $373 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off.

Exercise 7-9 (Algo) Percent of sales method; write-off LO P3

Prepare Chan's journal entries to record the transactions of December 31, February 1, and June 5.

view transaction list

1. Record the estimated bad debts expense.

Date general journal debit credit

Dec 31

2) Wrote off P. Park's account as uncollectible.

Feb 01

3) Reinstated Park's previously written off account.

Jun 05

4) Record the cash received on account.

Jun 05

Exercise 7-12 (Static) Percent of accounts receivable method LO P3

Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $55,000, and it estimates that 2% will be uncollectible.

Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has:

(a) a $415 credit balance before the adjustment.

(b) a $291 debit balance before the adjustment.

View Transaction List

Journal Entry Worksheet

1) Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $415 credit balance before the adjustment.

Transaction General Journal debit credit

A)

2) Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $291 debit balance before the adjustment.

Transaction general journal debit credit

B)

Use the following information for the Exercises 12-13 below. (Algo)

[The following information applies to the questions displayed below.]

Del Gato Clinic's cash account shows an $16,158 debit balance and its bank statement shows $15,814 on deposit at the close of business on June 30.

1. Outstanding checks as of June 30 total $2,390.
2. The June 30 bank statement lists a $60 bank service charge.
3. Check No. 919, listed with the canceled checks, was correctly drawn for $789 in payment of a utility bill on June 15. Del Gato Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $798.
4. The June 30 cash receipts of $2,683 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement.

Exercise 6-13 (Algo) Adjusting entries from bank reconciliation LO P3

Prepare the adjusting journal entries that Del Gato Clinic must record as a result of preparing the bank reconciliation.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1) Record the adjusting entry related to outstanding checks, if necessary.

A)

2)Record the adjusting entry related to bank service charges, if necessary.

B)

3)Record the adjusting entry related to Check No. 919, if necessary.

C)

4) Record the adjusting entry related to the June 30 deposit, if necessary.

D)

Exercise 6-14 (Static) Bank reconciliation LO P3

Wright Company's cash account shows a $27,500 debit balance and its bank statement shows $25,800 on deposit at the close of business on May 31.

1. The May 31 bank statement lists $100 in bank service charges; the company has not yet recorded the cost of these services.
2. Outstanding checks as of May 31 total $5,600.
3. May 31 cash receipts of $6,200 were placed in the bank's night depository after banking hours and were not recorded on the May 31 bank statement.
4. In reviewing the bank statement, a $400 check written by Smith Company was mistakenly drawn against Wright's account.
5. The bank statement shows a $600 NSF check from a customer; the company has not yet recorded this NSF check.

Prepare its bank reconciliation using the above information.

WRIGHT COMPANY

BANK RECONCILIATION

MAY 31

Bank statement balance Book balance

Add: Add:

Deduct: Deduct:

Adjusted bank balance Adjusted bank balance