bank reconciliation

1. Bank erroneously records the company’s deposit for $5,000 instead of $7,500.

Bank, + $2,500

2. The accounting clerk erroneously records a check for $430 instead of $340.

Book, + $90

3. The accounting clerk erroneously records a deposit for $4,500 instead of $5,500.

Book, +$1,000

4. Bank erroneously records the company’s check for $5,000 instead of $5,250.

Bank, - $250

5. The bank records ABC’s $1,100 deposit into XYZ’s account.

Bank, + $1,100 (ABC) Bank, - $1,100 (XYZ)

ABC records bad debt expense of $34,000 on 12/31/2013. XYZ Corp goes bankrupt on 3/3/2014, and at the time, they owe ABC $3,250. What are the journal entries for ABC on 12/31 and 3/3?

12/31 Bad Debt Exp 34,000

ADA 34,000

3/3 ADA 3,250

A/R – XYZ 3,250

ABC uses the aging method to estimate bad debts. ABC estimates its uncollectible accounts to be $50,000 on 12/31/2013. What is the adj j.e. if ADA had A) a $3,000 debit balance, or B) a $7,000 credit balance?

1. % Credit Sales Method

2. Aging Method