Problem 1: Marcus Company developed the following reconciling information in preparing its September bank reconciliation:
Cash balance per bank, 9/30 $11,000
Note receivable collected by bank 6,000
Outstanding checks 9,000
Deposits-in-transit 4,500
Bank service charge 75
NSF 1,200
Using the above information, determine the cash balance per books (before adjustments) for the Marcus Company.
- $9,775
- $15,725
- $15,500
- $1,775
Problem 2: Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment), and uncollectible accounts expense is estimated at 3% of net sales. If net sales are $600,000, the amount of the adjusting entry to record the provision for doubtful accounts is _______.
- $18,500
- $17,500
- $18,000
- none of the above