Unit 5 Assignment (5%) Gray Corporation controls its cash by depositing receipts on a daily basis and making all disbursements by cheque. After all the posting for the month of August 2020 was completed, the cash balance in the general ledger account at the end of the month was $10,475. The bank statement for the month and received from the First National Bank showed the balance to be $18,000. The following data are available for the purpose of reconciling these balances: a. Cash receipts collected on August 31 mounting to $3,000 have been placed in the night depository and do not appear on the bank statement Bank memes previously not available to the company are included with the bank statement. A meme for an NS cheque originally received as payment for an account receivable of $3,000, is included. A memo for bank charges of $75 for the NSF cheque is also included. Another memo advises the company that $2,000 Note Receivable has been collected by the bank, ($1.950 deposit and a bank charge of 50. This represents the net proceeds of a collection the bank had made on behalf of the company on a $2,000 note receivable c. Cheques written during the month but not included with the bank statement are no. 1200, 51,500, no. 1223, 52,000, no. 1260, 5950; no. 1294.53.500 Cheque no. 1222 is returned with the bank statement. The cheque was made for $6,500, the correct amount owing for office expense. The cheque was recorded in the company records in the amount of $5,600 e. Cheques outstanding at the end of July included cheques no. 1114 for $1,600 and no. 1116 for $1,250. Cheque no. 1116 cleared the August bank statement, cheque no. 1114 did not Required 1. Prepare a bank reconciliation at August 31. 2. Prepare the necessary adjusting Journal entries required to make the cash account in the peneral ledger agree with the adjusted cash balance on the July bank reconciliation The Gray Corporation, has estimated its bad debts at 0.5 percent of net credit sales. During 2018, Acme decided to calculate the required balance for the allowance for doubtful accounts at year-end, December 31, by aging its accounts receivable and determined that of accounts receivable is estimated not to be collected. The following data, which already have been recorded in the company's general ledger, are also available: 2017 2018 Accounts written off On March 14, 2017 (Tosca) $1,500 On March 30, 2018 (Capital) $600 Recoveries of accounts written off On June 5, 2018 (Tosca 200 The Allowance for Doubtful Accounts general ledger account reported the lary 1, 2017 to be $5,000 credit Net credit sales for 2017 was $400,000. 2018 year-end balance for accounts receivable is $160,000 Required. Prepare journal entries to record 1. The amount of bad debt expense for the year 2017 1) Show the calculation for bad debt expense 10 ournal entry 2. The bad debt expense on December 31, 2018 200) Show the calculation for bad debt expense 200) Journal entry 3. The collection from Tosca on une 5, 2018 Unit 5 Assignment (5) Gray Corporation controls its cash by depositing receipts on a daily basis and making all disbursements by cheque. After all the posting for the month of August 2020 was completed, the cash balance in the general ledger account at the end of the month was $10,475. The bank statement for the month and received from the First National Bank showed the balance to be $18,000. The following data are available for the purpose of reconciling these balances: Cash receipts collected on August 31 amounting to $3,000 have been placed in the night depository and do not appear on the bank statement Bank memos previously not available to the company are included with the bank statement. A memo for an NSF cheque, originally received as payment for an account receivable of $3,000, is included. A memo for bank charges of $75 for the NSF cheque is also included. Another memo advises the company that $2,000 Note Receivable has been collected by the bank, 151,950 deposit and a bank charge of SSO). This represents the net proceeds of a collection the bank had made on behalf of the company on a $2,000 not receivable. c Cheques written during the month but not included with the bank statement are no. 1200, 51,500, no. 1223, $2,000, no. 1260, $950, no. 1294, $3.500 d. Cheque no. 1222 is returned with the bank statement. The cheque was made for $6,500, the correct amount owing for office expense. The cheque was recorded in the company records in the amount of $5,600 e Cheques outstanding at the end of July included cheques no. 1114 for $1,600 and no 1116 for $1,250. Cheque no. 1116 cleared the August bank statement, cheque no. 1114 did not Required 1. Prepare a bank reconciliation at August 31. 2. Prepare the necessary adjusting journal entries required to make the cash account in the general ledger agree with the adjusted cash balance on the Julybank reconciliation The Gray Corporation, has estimated its bad debts at 0.5 per cent of net credit sales. During 2018, Acme decided to calculate the required balance for the allowance for doubtful accounts at year-end, December 31, by aging its accounts receivable and determined that of accounts receivable is estimated not to be collected. The following data, which already have been recorded in the company's general ledger, are also available: 2017 2018 Accounts written off On March 14, 2017 (Tosca) $1,500 On March 30, 2018 (Capital $600 Recoveries of accounts written off On June 5, 2018 (Tosca) 200 The Allowance for Doubtful Accounts general ledger account reported the January 1, 2017 to be $5,000 credit Net credit sales for 2017 was $400,000. 2018 year-end balance for accounts receivable is $160,000 Required:Prepare journal entries to record: 1. The amount of bad debt expense for the year 2017 L11) Show the calculation for bad debt expense I. 116) Journal entry 2. The bad debt expense on December 31, 2018 21a) Show the calculation for bad debt expense 200) Journal entry 3. The collection from Tosca on June 5, 2018 Unit 5 Assignment (5%) Gray Corporation controls its cash by depositing receipts on a daily basis and making all disbursements by cheque. After all the posting for the month of August 2020 was completed, the cash balance in the general ledger account at the end of the month was $10,475. The bank statement for the month and received from the First National Bank showed the balance to be $18,000. The following data are available for the purpose of reconciling these balances: a. Cash receipts collected on August 31 mounting to $3,000 have been placed in the night depository and do not appear on the bank statement Bank memes previously not available to the company are included with the bank statement. A meme for an NS cheque originally received as payment for an account receivable of $3,000, is included. A memo for bank charges of $75 for the NSF cheque is also included. Another memo advises the company that $2,000 Note Receivable has been collected by the bank, ($1.950 deposit and a bank charge of 50. This represents the net proceeds of a collection the bank had made on behalf of the company on a $2,000 note receivable c. Cheques written during the month but not included with the bank statement are no. 1200, 51,500, no. 1223, 52,000, no. 1260, 5950; no. 1294.53.500 Cheque no. 1222 is returned with the bank statement. The cheque was made for $6,500, the correct amount owing for office expense. The cheque was recorded in the company records in the amount of $5,600 e. Cheques outstanding at the end of July included cheques no. 1114 for $1,600 and no. 1116 for $1,250. Cheque no. 1116 cleared the August bank statement, cheque no. 1114 did not Required 1. Prepare a bank reconciliation at August 31. 2. Prepare the necessary adjusting Journal entries required to make the cash account in the peneral ledger agree with the adjusted cash balance on the July bank reconciliation The Gray Corporation, has estimated its bad debts at 0.5 percent of net credit sales. During 2018, Acme decided to calculate the required balance for the allowance for doubtful accounts at year-end, December 31, by aging its accounts receivable and determined that of accounts receivable is estimated not to be collected. The following data, which already have been recorded in the company's general ledger, are also available: 2017 2018 Accounts written off On March 14, 2017 (Tosca) $1,500 On March 30, 2018 (Capital) $600 Recoveries of accounts written off On June 5, 2018 (Tosca 200 The Allowance for Doubtful Accounts general ledger account reported the lary 1, 2017 to be $5,000 credit Net credit sales for 2017 was $400,000. 2018 year-end balance for accounts receivable is $160,000 Required. Prepare journal entries to record 1. The amount of bad debt expense for the year 2017 1) Show the calculation for bad debt expense 10 ournal entry 2. The bad debt expense on December 31, 2018 200) Show the calculation for bad debt expense 200) Journal entry 3. The collection from Tosca on une 5, 2018 Unit 5 Assignment (5) Gray Corporation controls its cash by depositing receipts on a daily basis and making all disbursements by cheque. After all the posting for the month of August 2020 was completed, the cash balance in the general ledger account at the end of the month was $10,475. The bank statement for the month and received from the First National Bank showed the balance to be $18,000. The following data are available for the purpose of reconciling these balances: Cash receipts collected on August 31 amounting to $3,000 have been placed in the night depository and do not appear on the bank statement Bank memos previously not available to the company are included with the bank statement. A memo for an NSF cheque, originally received as payment for an account receivable of $3,000, is included. A memo for bank charges of $75 for the NSF cheque is also included. Another memo advises the company that $2,000 Note Receivable has been collected by the bank, 151,950 deposit and a bank charge of SSO). This represents the net proceeds of a collection the bank had made on behalf of the company on a $2,000 not receivable. c Cheques written during the month but not included with the bank statement are no. 1200, 51,500, no. 1223, $2,000, no. 1260, $950, no. 1294, $3.500 d. Cheque no. 1222 is returned with the bank statement. The cheque was made for $6,500, the correct amount owing for office expense. The cheque was recorded in the company records in the amount of $5,600 e Cheques outstanding at the end of July included cheques no. 1114 for $1,600 and no 1116 for $1,250. Cheque no. 1116 cleared the August bank statement, cheque no. 1114 did not Required 1. Prepare a bank reconciliation at August 31. 2. Prepare the necessary adjusting journal entries required to make the cash account in the general ledger agree with the adjusted cash balance on the Julybank reconciliation The Gray Corporation, has estimated its bad debts at 0.5 per cent of net credit sales. During 2018, Acme decided to calculate the required balance for the allowance for doubtful accounts at year-end, December 31, by aging its accounts receivable and determined that of accounts receivable is estimated not to be collected. The following data, which already have been recorded in the company's general ledger, are also available: 2017 2018 Accounts written off On March 14, 2017 (Tosca) $1,500 On March 30, 2018 (Capital $600 Recoveries of accounts written off On June 5, 2018 (Tosca) 200 The Allowance for Doubtful Accounts general ledger account reported the January 1, 2017 to be $5,000 credit Net credit sales for 2017 was $400,000. 2018 year-end balance for accounts receivable is $160,000 Required:Prepare journal entries to record: 1. The amount of bad debt expense for the year 2017 L11) Show the calculation for bad debt expense I. 116) Journal entry 2. The bad debt expense on December 31, 2018 21a) Show the calculation for bad debt expense 200) Journal entry 3. The collection from Tosca on June 5, 2018