uat6(8 poines) Prepare aproperiate adjesting journal entrics for the bank Questi

Question

uat6(8 poines) Prepare aproperiate adjesting journal entrics for the bank Questions 7 and 8.The following information was abstracted from Joe Brown Company December 31" 2016 Sales Accounts Receivable Dec. 31, 2016. $ 1,209,000 379,000 $1,430 credit $ 18,300 Allowance for Doubtful Accounts. Sales Return and Allowances. PREPARE THE JOURNAL ENTRIES FOR BAD DEBT EXPENSE UNDER EACH OF THE FOLLOWING ASSUMPTIONS: Question 7 (6 points). It is assumed that3-25% of current accounts receivable will become uncollectible. Debit Credit

Explanation / Answer

Question no:7 3.25% of Current account recevables became uncollectables Currnet account recevables =$379000 bad debt expense =$379000*3.25% =$12317.50 Date Journal Entry Debit Credit 31/12/2016 Bad debt Expenses A/c $12317.50        To Allowance for uncollectables A/c $12317.50 (Being uncollectable has been recorded) Question : 5 bank reconcilation statement on 30 july ,2016 Amount in $ balance as per bank Statement 14673 Add: deposits in transit 3976 Less: checks outstanding ($427+368+193) -988 Adjusted cash balance 17661 balance as per Books 16589 Add: Note collected by bank 1690 Add: bank interest earned 208 Less: Bank charges -75 Less: cheque returned Due to Insufficient funds -751 Adjusted cash balance 17661

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