*Problem 7-3A (Part Level Submission) On July 31, 2014, Redeker Company had a ca
ID: 2446886 • Letter: #
Question
*Problem 7-3A (Part Level Submission) On July 31, 2014, Redeker Company had a cash balance per books of $6,400. The statement from Nashota State Bank on that date showed a balance of $7,950.80. A comparison of the bank statement with the Cash account revealed the following facts. 1. The bank service charge for July was $24. 2. The bank collected a note receivable of $1,677 for Redeker Company on July 15, plus $31 of interest. The bank made a $11 charge for the collection. Redeker has not accrued any interest on the note. 3. The July 31 receipts of $1,371.30 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31. 4. Company check No. 2480 issued to T. Laird, a creditor, for $394.00 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $349.00. 5. Checks outstanding on July 31 totaled $2,046.10. 6. On July 31, the bank statement showed an NSF charge of $752 for a check received by the company from K. Wagner, a customer, on account. Prepare the bank reconciliation as of July 31.Explanation / Answer
1. What is bad debt expense for 2013?
Bad Debt expense = 1.70% * ($4,700,000) = 79,900
2. Determine the amount of accounts receivable written off during 2013.
Beginning balance of year......................44,000
Add: Bad debt expense 2013.................79,900
Less: End-of-year balance.....................(41,000)
Account Receiveable written off.............82,900
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.