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At 31 December 2019, Fred Company has the following account balances: Debit Credit Cash $10,836,50 Accounts Receivable $19,300.00 Allowance for doubtful accounts $300.00 Answer part

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At 31 December 2019, Fred Company has the following account balances: Debit Credit Cash $10,836,50 Accounts Receivable $19,300.00 Allowance for doubtful accounts $300.00 Answer part (1) and (b) independently. 2) The 31 December 2019 bank statement showed a balance of $14,051.50. You are to prepare the bank reconciliation of Fred Company at 31 December 2019, using the following supplementary information: 1. Deposit in transit at 31 December 2019 was $2,596.00. IL Outstanding checks: no. 320, $588.00; no. 323, S1,060.00; no.325, $225.00. III. Service charge by bank, $60.00. IV. A note receivable for $4,000.00 left by Fred Company with bank for collection and the related interest of $284.00 had been collected and credited to company's account. No interest expense or payable is recorded before. V. A check for $205.00 drawn by a customer, Spot Ltd, in settlement of an accounts receivable, but deducted from Fred 's account by the bank and returned with the notation "NSE." VI. Fred's check No. 318 was correctly written for $890.00 for a payment on account, but erroneously recorded in Fred 's accounting records as $809.00. 1) Prepare the bank reconciliation of Fred Company at 31 December 2019. (8 marks) ii) Prepare the adjusting entries required to correct the balance of cash in Fred's book. (5 marks) b) Fred Company uses the allowance method to estimate uncollectible accounts receivable. The company estimated the uncollectible accounts receivable using aging of the accounts receivable at year-end. The following is the partial aging analysis done Number of Days Outstanding Total 0-30 31-60 61-90 91-120 Over 120 Accounts receivable $19,300 $7,000 $4,600 $3,900 $2,300 $1,500 % uncollectible 1% 3% 5% 8% 10% 1) Compute the estimated amounts of uncollectible accounts receivable at 31 December 2019. (3 marks) ii) Prepare the year-end adjusting journal entry to record the bad debts. (2 marks)

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