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Unit 5 Assignment (5%) Tucker Corporation controls its cash by depositing receipts on a daily basis and making all disbursements by cheque. After all the
Unit 5 Assignment (5%) Tucker Corporation controls its cash by depositing receipts on a daily basis and making all disbursements by cheque. After all the posting for the month of August 2021 was completed, the cash balance in the general ledger account at the end of the month was $10,475. The bank statement for the month end received from the First National Bank showed the balance to be $15,000. The following data are available for the purpose of reconciling these balances: a Cash receipts collected on August 31 amounting to $3,000 have been placed in the night depository and do not appear on the bank statement. b. Bank memos previously not available to the company are included with the bank statement. A memo for C an NSF cheque, originally received as payment for an account receivable of $3,000, is included. A memo for bank charges of $75 for the NSF cheque is also included. Another memo advises the company that $2,000 Note Receivable has been collected by the bank, ($1,950 deposit and a bank charge of $50). This represents the net proceeds of a collection the bank had made on behalf of the company on a $2,000 note receivable. Cheques written during the month but not included with the bank statement are no. 1200, $1,500; no. 1223, $2,000, no. 1260, $950; no. 1294, $3,500. d. Cheque no. 1222 is returned with the bank statement. The cheque was made for $6,500, the correct amount owing for office expense. The cheque was recorded in the company records in the amount of $5,600. e. Cheques outstanding at the end of July included cheques no. 1114 or $1,600 and no. 1116 for $1,250. Cheque no. 1116 cleared the August bank statement: cheque no. 1114 did not. Required: 1. Prepare a bank reconciliation at August 31, 2021. 2. Prepare the necessary adjusting journal entries required to make the cash account agree with the adjusted cash balance on the August bank reconciliation the general ledger The Tucker Corporation, has estimated its bad debts at 0.5 per cent of net credit sales. During 2021, Acme decided to calculate the required balance for the allowance for doubtful accounts at year-end, December 31, by aging its accounts receivable and determined that 5% of accounts receivable is estimated not to be collected. The following data, which already have been recorded in the company's general ledger, are also available: 2020 2021 Accounts written off On March 14, 2017 (Acme) $1,500 On March 30, 2018 (Jones) $600 Recoveries of accounts written off On June 5, 2021 (Jones) 200 The Allowance for Doubtful Accounts general ledger account reported the January 1, 2020 to be $5,000 credit. Net credit sales for 2020 was $400,000. 2021 year-end balance for accounts receivable is $160,000 Required: Prepare journal entries to record: 1. The amount of bad debt expense for the year 2020 1. 1(a) Show the calculation for bad debt expense ii. 1(b) Journal entry 2. The bad debt expense on December 31, 2021 12(a) Show the calculation for bad debt expense it. 2(b) Journal entry 3. The collection from Jones on June 5, 2021
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