Abdur Rahman Companys bank statement for the month of September showed the balance per bank of $8000.

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Question:

Abdur Rahman Company’s bank statement for the month of September showed the balance per bank of $8000. The company’s Cash account in the general ledger had a balance of $7,465 at September 30. Other information is as follows:

(A) The statement included a debit memo of $60 for printing of additional company checks.

(B) Cash sales of $950 on September 10 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $590. The bank credited Abdur Rahman Company for the correct amount.

(C) A payment was received $450 from one of the customer was recorded by the company accountant and deposited correctly in the bank account, however the subsidiary ledger account shows that the amount received should have been $550.

(D)Outstanding checks at September 30 totaled $500, deposits in transits were $800.

(E) On September 22, the company written a check no,007 for $750 to one of it’s supplier Huzaifa Company. The check, which cleared the bank in September, was incorrectly journalized and posted by Abdur Rahman Company for $950.

(F) A $2,000 note receivable was collected by the bank for Abdur Rahman Company on September 30 plus $100 interest. The bank charged a collection fee of $15. No Interest has been accrued on the note.

(G)The salaries expense $5,000 for current month was not paid.

(H)Among the cancelled checks was a check issued by Huzaifa Company to Mohammad Company for $1,000 that was incorrectly charged to Abdur Rahman Company by the bank.

(I) On September 30, the bank statement showed a NSF charge of $750 for a check issued by Rahman Company, a customer of Abdur Rahman Company.

Required: Prepare a bank reconciliation as of September 30, 2050, for Abdur Rahman’s company

2. Avett Furniture Store has credit sales of $400,000 in 2014 and a debit balance of $600 in the Allowance for Doubtful Accounts at year-end. As of December 31, 2014, $130,000 of accounts receivable remain uncollected. The credit manager prepared an aging schedule of accounts receivable and estimates that $7,000 will prove to be uncollectible. On March 4, 2015, the credit manager authorizes a write-off of the $1,200 balance owed by B. Fernitti.

Instructions

1) Prepare the adjusting entry to record the estimated uncollectible accounts expense in 2014.

2) Show the balance sheet presentation of accounts receivable on December 31, 2014.

3) On March 4, before the write-off, assume the balance of the Accounts Receivable account is $160,000 and the balance of Allowance for Doubtful Accounts is a credit of $3,000.

Make the appropriate entry to record the write-off of the Ferntti account. Also show the balance sheet presentation of accounts receivable before and after the write-off.