Financial Act Chpt 8 Notes

In the amount of 568 the recording error was

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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 for $168. 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 $ 5,000 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 d...
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This note was uploaded on 01/23/2014 for the course ACG 2021 taught by Professor Linkovich during the Spring '08 term at University of South Florida.

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