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Unformatted text preview: s recorded by Gallo Co. in the amount of
$568. The recording error was discovered upon investigation of the June bank statement.
An Error was made in recording check # 1005, when Gallo Company wrote the check to pay the monthly
utilities expense. The check correctly cleared the bank at $100, but Gallo has recorded the check on its books
Complete the bank reconciliation as of June 30 (bank and book balance to corrected cash balance). Give the journal entries necessary once the bank reconciliation is completed at 6/30/09: DATE ACCOUNT DEBIT 48 CREDIT Bad Debts Expense
Allowance for Doubtful Accounts $ 5,000 • Percentage of Accounts Receivable (Balance Sheet Approach): Company reviews accounts
receivables balances to estimate amounts that will be uncollectible. Looks at a percentage of
A/R it expects to be uncollectible, then determines amount needed to adjust the allowance for
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