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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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