Question

DAD company had checks outstanding totaling $12,800 on its June bank reconciliation. In July, DAD Company issued checks totaling $78,700. The July bank statement shows that $76,600 in checks cleared the bank in July. A check from one of DAD Company's customers in the amount of $1,600 was also returned marked "NSF." The amount of outstanding checks on DAD Company's July bank reconciliation should be

a.   $2,100.

b.   $13,300.

c.   $14,900.

d.   $16,500.

An aging of a company's accounts receivable indicates that $4,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1700 debit balance, the adjustment to record bad debts for the period will require a

a.   debit to Bad Debt Expense for $3,300.

b.   debit to Bad Debt Expense for $5,700.

c.   debit to Bad Debt Expense for $4,700.

d.   credit to Allowance for Doubtful Accounts for $700.

Answer 1