Mini test 2 SP 2010 A
A company made an after-hours bank deposit on September 30 that did not appear on the bank
statement dated as of September 30. In preparing the September 30 bank reconciliation, the company
Deduct the deposit from the bank statement balance.
Send the bank a debit memorandum.
Deduct the deposit from the September 30 book balance and add it to the October 1 book balance.
Add the deposit to the book balance of cash.
Add the deposit to the bank statement balance.
Rahal's Auto Parts reported accounts receivable and an allowance for uncollectible accounts of
$85,000 and $3,000, respectively, at December 31, 2005. For 2006, Rahal estimates bad debt expense
to be 1% of credit sales. During 2006, Rahal's credit sales and collections were $400,000 and
$410,000, respectively, and $2,000 in bad accounts was written off.
Rahal's 2006 bad debt expense is:
Rahal's accounts receivable at December 31, 2006, are:
None of the above
Which of the following do not change the balance in Accounts Receivable?
Customer returns on credit sales
Collections from customer accounts
Bad debts expense accrual
Write-offs of uncollectible accounts
All of the above would change the balance in Accounts Receivable.