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The cash account for Santiago Co. on May 31, 2014 indicated a balance of S15,515. The May bank statement indicated an ending balance of S20,245.
The cash account for Santiago Co. on May 31, 2014 indicated a balance of S15,515. The May bank statement indicated an ending balance of S20,245. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: Checks outstanding totaled $4,820 a. b. A deposit of S3.796 had been made too late to appear on the bank statement C.A check for $1,233 returned with the statement had been incorrectly recorded as $23,3 The check was originally credited to accounts payable. The bank collected $5,541 on a note left for collection. Bank service charges for May amounted to S45 f.A check for $790 was retumed by the bank because of insufficient funds. Prepare the bank reconciliation as of May 31,2014. Journalize the necessary entries. Santiago Co. Bank Reconciliation May 3 2014 Journal Post Ref Date Description Credit 2. At the end of the current year, Accounts Receivable has a balance of $285,000; Allowance for Doubtful Accounts has a credit balance of $9,000; and net sales for the year total $463,000. Using the aging of receivables method, the balance of the Allowance for Doubtful Accounts is estimated as $50,000 Determine the following a. Using the Percent of Sales Method and 1% of net sales, what is the amount of the adjusting entry for uncollectible accounts? b. Using the Analysis of Receivables Method, what is the amount of the adjusting entry for uncollectible accounts
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