ACCT216 Week 3 Homework Classify the following items as (a) an addition to the b

Question

ACCT216 Week 3 Homework Classify the following items as (a) an addition to the bank balance, (b) a subtraction from the bank balance, (c) an addition to the book balance, or (d) a subtraction from the book balan 1. Deposits in transit Non-sufficient funds check Outstanding checks -Bank Service Charge Bank Error: the bank debited our account for a deposit made by another customer 2. During 2013, Jimmy Enterprises completed the following transactions: a. b. c. d. Sales revenue on account, $620,000 Collections on account, $365,000 Write-offs of uncollectibles, $15,000 Uncollectible account expense, 4% of sales revenue Start with an accounts receivable balance of $435,000 and post the above entries to the Accounts Receivable T-Account. 1.

Explanation / Answer

Solution 1)

(i) c for deposits in transit

(ii) d for non-sufficient funds check

(iii) d for the outstanding check

(iv) b for bank charges

(v) a for the bank error

Solution 2) Account receivables A/c

Particulars amount particulars amount To balance b/d $435000 By cash received $365000 To credit sales $620000 By Bad debts $15000 By uncollectable expenses( being 4% of sales) $24800 By balance c/d ( closing balance) $650200 $1055000 $1055000

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