Answer:
b. $180 increase to Cash and a $180 decrease to Utility Expense
Explanation:
Since it is given that the correct amount for utilities is $790 and it is wrongly entered as a $970 that means utility expense is excess debited for $180
So to adjust the bank reconciliation the journal entry is
Cash $180
To Utilities $180
(being the adjusted entry is recorded)
The $180 is come from
= $970 - $790
= $180
So it increased the cash and decreased the expenses so the recording is done accordingly
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Answer:
Explanation:
The computation of the bad debt expense is shown below:
= (Credit sales × estimated percentage given ) - (credit balance of Allowance for Uncollectible Accounts)
= ($985,750 × 2%) - ($18,000)
= $19,715 - $18,000
= $1,715
= (Credit sales × estimated percentage given ) + (debit balance of Allowance for Uncollectible Accounts)
= ($985,750 × 2%) - ($18,000)
= $19,715 + $18,000
= $37,715
Since in the question it does not specify that Uncollectible Accounts has debit or credit balance so we computed in the both methods
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