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Chapter 6:
Problem Hints |
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and check figures |
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| MC questions: |
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M6-4 |
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M6-5 |
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| 1 |
d |
Sales |
56 |
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a |
Allowance for doubtful accounts 17000 |
accounts |
17000 |
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| 2 |
b |
CGS |
-48 |
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Accounts Receivable |
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17000 |
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| 3 |
b |
G Profit |
8 |
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| 4 |
d |
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b |
Bad Debts Expense |
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14000 |
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| 5 |
b |
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8/56=.143 |
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Allowance for doubtful accounts |
14000 |
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| 6 |
c |
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| 7 |
d |
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| 8 |
b |
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| 9 |
d |
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M6-6 |
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| 10 |
c |
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a. |
Bad Debts Expense |
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10,000 |
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Allowance for Doubtful Accounts |
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10,000 |
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b. |
Allowance for Doubtful Accounts |
8,000 |
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Accounts Receivable |
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8,000 |
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E6-22 |
Company's Books |
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Bank Statement |
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1 |
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June 30, 2004 Balance |
$7,400 |
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June 30, 2004 Balance |
$6,050 |
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Additions: |
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Additions: |
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None |
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Deposit in transit |
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2,000 |
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$8,050 |
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Deductions: |
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Deductions: |
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Bank service charge |
50 |
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Outstanding checks |
700 |
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Correct Balance, June 30, 2004 |
$7,350.00 |
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Correct Balance, June 30, 2004 |
$7,350 |
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2 |
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Bank Service Charge (Expense) |
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50 |
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Cash |
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50 |
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3 |
The correct cash balance in bank is
$7,350 |
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4 |
Balance Sheet (June 30, 2004) |
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Current Assets: |
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Cash |
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$7,650.00 |
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| Homework
problems to be turned in (Hints) |
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| E6-2 |
Net sales = $8,830 |
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| E6-8 |
a. |
Bad Debts Expense |
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9,750 |
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Allowance for doubtful Accounts |
9,750 |
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| E6-16 |
1 |
Bad Debts Expense |
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3,650 |
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Allowance for doubtful accounts |
3,650 |
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| E6-23 |
1 |
September 30 balance per books |
$5,700 |
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September 30 balance per bank |
$4,600 |
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Reconciled balances |
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$5,500 |
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