Using the following information:

1. The bank statement balance is $5,304.
2. The cash account balance is $5,754.
3. Outstanding checks amounted to $785.
4. Deposits in transit are $1,192.
5. The bank service charge is $34.
6. A check for $71 for supplies was recorded as $62 in the ledger.

Prepare a bank reconciliation for Candace Co. for May 31.

Candace Co.

Bank Reconciliation

May 31

Equipment with a cost of $148,445 has an estimated residual value of $7,975 and an estimated life of 7 years or 15,591 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used for 3,063 hours?

a.$20,067.14

b.$27,596.67

c.$21,206.43

d.$27,642.53

Accounts Receivable Turnover and Days' Sales in Receivables

Classic Company designs, markets, and distributes a variety of apparel, home decor, accessory, and fragrance products. The companys products include such brands as Polo by Classic, Classic Purple Label, Classic, Polo Jeans Co., and Chaps. Polo Classic reported the following for two recent years:

	For the Period Ending
	Year 2		Year 1
Sales	$5,062,550		$5,007,800
Accounts receivable	525,600		540,200

Assume that accounts receivable were $481,800 at the beginning of Year 1.

a. Compute the accounts receivable turnover for Year 2 and Year 1. Round your answers to two decimal places.

Year 2:	fill in the blank 1
Year 1:	fill in the blank 2

b. Compute the days' sales in receivables for Year 2 and Year 1. Round your final answers to one decimal place. Use 365 days per year in your calculations.

Year 2:	fill in the blank 3 days
Year 1:	fill in the blank 4 days