Financial Act Chpt 8 Notes

O example the company has net credit sales for the

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Unformatted text preview: to estimate uncollectible accounts. o Example: The Company has net credit sales for the year of $100,000, and upon review of past years, estimates that the amount of credit sales that will be uncollectible is approximately 5%. The company prepares and adjusting entry as follows: 49 Bank Reconciliation Review Problem Balance per Bank Statement: $5,500; Balance per books: $5,000 June 30 Deposits in transit $ 600 Outstanding checks $ 425 Notes receivable collected by bank for Gallo Co. in June, but was not yet recorded $ 1,000 Service charge deducted by bank, not recorded in books as of 6/30. $ 25 NSF checks recorded in books the day after receiving the bank statement $ 350 An Error was made in recording check #1002, when a payment was made on and accounts payable. The check cleared the bank in the correct amount of $586, but wa...
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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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