Question

The ending bank statement balance at November 30 is $ 7 750. The bank statement shows a service charge of $ 75?, electronic funds receipts of? $500, and a NSF check for? $350. Deposits in transit total $ 2 250 and outstanding checks are $ 1535. The balance per books at November 30 is $ 8 390. What is the adjusted bank balance at November? 30?

A. $ 7 750

B. $ 7 825

C. $ 8 465

D. $ 9 105

When analyzing a? company's current? ratio:

A.

a current ratio of less than 1.00 means that current liabilities exceed current assets.

B.

the industry in which the company operates should not be considered.

C.

most successful businesses operate with current ratios between 0.1 and 0.5.

D.

the current ratio measures the? company's ability to pay all liabilities with current assets.

3-Under the allowance? method, the entry to write off a $ 2 600 uncollectible account includes? a:

A. debit to Allowance for Uncollectible Accounts for $ 2600 and credit to Accounts Receivable for $2600.

B. debit to Uncollectible Account Expense for $ 2 600 and credit to Allowance for Uncollectible Accounts for $ 2600.

C. debit to Accounts Receivable for $ 2 600 and credit to Allowance for Uncollectible Accounts for $ 2 600.

D. debit to Accounts Receivable for $ 2 600 and credit to? Uncollectible-Account Expense for $ 2600

Answer 1

1) Adjusted bank balance = Balance as per bank statement+deposit in transit-outstanding check

= 7750+2250-1535

Adjusted bank balance = 8465

So answer is c) $8465

2) When analyzing a company's current ratio

So answer is a) a current ratio of less than 1.00 means that current liabilities exceed current assets.

3) Write off entry :

Date	account and explanation	debit	creidt
	Allowance for doubtful accounts	2600
	Account receivable		2600

So answer is a) debit to Allowance for Uncollectible Accounts for $ 2600 and credit to Accounts Receivable for $2600