Question 23 In the month of November Blue Spruce Corp wrote

Question 23

In the month of November Blue Spruce Corp. wrote checks in the amount of $64400. In December, checks in the amount of $88100 were written. In November, $58937 of these checks were presented to the bank for payment, and $75746 in December. What is the amount of outstanding checks at the end of December?

Question 24

The following information was taken from Windsor, Inc. cash budget for the month June

If the company has a policy of maintaining an end of the month cash balance of $52000, the amount the company would have to borrow is

Question 28

M. Cornett is a corporation that sells breakfast cereal. Based on the accounts listed below, what are M. Cornett\'s total trade receivables?

Income tax refund due

$460

Advance due to the company from

    the company president

210

3-month note due from M. Cornett\'s main customer

1800

Interest due this month on the above note

140

Due and unpaid from this month\'s sales

9810

Due and unpaid from last month\'s sales

1120

$12050

$12730

$10930

$13540

Question 30

Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $52000. If the balance of the Allowance for Doubtful Accounts is $10400 debit before adjustment what is the amount of bad debt expense for that period?

$62400

$52000

$10400

$41600

Question 31

Novak Corp. unadjusted trial balance includes the following balances (assume normal balances):

•

Accounts receivable

$1820000

•

Allowance for doubtful accounts

$42500

Bad debts are estimated to be 6% of outstanding receivables. What amount of bad debt expense will the company record?

$109700

$66700

$104330

$64570

$5463.

Solution

Q23. Answer is $ 17817 Explanation: Total checks outstanding (64400+88100) 152500 Less: Checks presented (58937+75746) 134683 Outstanding checks in Dec end 17817 Q24. Answer is $14000 Explanation: Beginning balancne 59000 Add: receipts 80000 Less: Disbursement 101000 Ending balance 38000 Required balance 52000 Borrowing required 14000 Q28. Answer is $ 12730 Explanation: Trade receivables: Amount due on notes receivable 1800 Due and unpaid for months sales 9810 Due and unpaoid for last month sales 1120 Q30. Answwr is $ 62400. Explanation: Estimated Uncollectible accounts 52000 Add: Debit balance in Allowance 10400 Bad debts expense 62400 Q31. Answer is $ 66700 Explanation: Estimated allowance required (1820000*6%) 109200 Less: Allowance balance existing 42500 Bad debt expense 66700