The ending balance on the bank statement for June is $1,425.33. The company has outstanding cheques of $263.35, outstanding deposits of $729.61, and incurred bank service fees of $12.00 during the month. The adjusted cash balance for the company as at June 30 is

a. $947.07.

b. $1,891.59.

c. $1,879.59.

d. $1903.59.

2. Bailey Inc.'s books revealed the following data for 2020 after all adjustments were made:

Cash sales	$825,000
Sales returns (on credit sales)	35,000
Allowance for doubtful accounts (credit balance)	3,800
Credit sales	575,000
Accounts receivable	168,000

Bailey estimates bad debt expense based on 2% of net credit sales. The bad debt expense for 2020 was

a. $10,800

b. $11,500

c. $14,600

d. $3,360