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The Cash account in the general ledger of Hendry Corporation shows a balance of $ 9 6 , 9 9 0 at December 3 1
The Cash account in the general ledger of Hendry Corporation shows a balance of $ at December year prior to performing a bank reconciliation The companys bank statement shows a balance of $ at the same date. An examination of thebank statement reveals the following:
Deposits in transit amount to $
Bank service charges total $
Outstanding checks total $
A $ check marked NSF from Kent Company one of Hendry Corporation's customers was returned to Hendry Corporation by the bank. This was the only NSF check that Hendry Corporation received during year
A canceled check no written by Hendry Corporation in the amount of $ for office equipment was incorrectly recorded in the general ledger as a debit to Office Equipment of $ and a credit to Cash of $
$ at December year these investments originally cost Hendry Corporation $
Corporation adjusts for accrued interest revenue monthly.
year ended December year totaled $ Of these credit sales, percent were estimated to eventually become uncollectible.
Instructions
a Prepare Hendry Corporation's bank reconciliation dated December year and provide the journal entry necessary to update the company's general ledger balances.
b Compute cash and cash equivalents to be reported in Hendry Corporation's balance sheet dated December year
c Prepare the adjusting entry necessary to account for the note receivable from Moran Industries at December year
d Determine the net realizable value of Hendry Corporation's accounts receivable at December year
e Determine the total dollar amount of financial assets to be reported in Hendry Corporation's balance sheet dated December year
f Assume that it is normal for firms similar to Hendry Corporation to take an average of days to collect an outstanding receivable. Is Hendry Corporation's collection performance above or below this average?
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