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