The journal entry necessary to update the Cash account after a bank reconciliation for a bank service charge would include:

Which of the following statements is true regarding the two allowance procedures used to estimate bad debts?

Action Signs recorded credit sales of $10,000 on the net method. Terms are 2/20, n/30. Select the correct statement below:

Dance Town AcademyThe items listed below were identified while preparing a bank reconciliation for the company’s checking account as of March 31. Cash balance according to the general ledger ? Bank statement balance $18,500 Outstanding checks 2,700 Customer’s NSF check 350 Bank service charges 100 Deposits in transit 1,000 Interest earned on the checking account 60   Refer to Dance Town Academy. How will the interest earned on the checking account be handled on a bank reconciliation?

Sales returns and allowances:

Which of the following items would be added to the balance per the company on a bank reconciliation?

A-One ConstructionThe following data are from the company’s records for the year ended December 31: Accounts Receivable–January 1 $455,000 Credit sales during the year 900,000 Collections from credit customers during the year 825,000 Customer accounts written off as uncollected during the year 15,000 Allowance for Doubtful Accounts        (After write-off of uncollected accounts) 2,100 Estimated uncollected accounts based on an aging analysis 29,200   Refer to A-One Construction. If the aging approach is used to estimate bad debts, what should the balance in the Allowance for Doubtful Accounts be after the bad debts adjustment?

Net sales equals:

The account which records differences between amounts of cash deposited and amounts from the cash register tapes is called

AT&U CompanyData for the year ended December 31 are presented below: Sales (credit) $2,500,000 Accounts Receivable (December 31) 640,000 Allowance for Doubtful Accounts (before adjustment December 31) – credit balance  20,000 Estimated amount of uncollected accounts based on aging analysis 45,000   Refer to AT&U Company. If the company estimates its bad debt to be 2% of credit sales, what will be the balance in the Allowance for Doubtful Accounts account after the adjustment for bad debts?