Question

What is a bank reconciliation and why is it important for companies to do it periodically?

B. Prepare a Bank Reconciliation Statement for XYZ company that has: • Bank statement of $9,000. • Cash account of $7,500. Additional information for the reconciliation:  Deposit in transit.  NSF Check.  Outstanding check.  Collections made by the bank. Required: provide an amount of each information to bring the adjusted balances to be equal .

Q2- Assume that you have a company. And the management estimates that 2.5% of sales will be uncollectible. Provide an amount of sales and prepare the journal entry using the percent of sales method

. Q3- Q3 A company that uses a perpetual inventory system made the following cash purchases and sales. There was no beginning inventory .

January 1: Purchased 100 units at SAR10 per unit

February 5: Purchased 60 units at SAR 12 per unit

March 16: Sold 40 Units for SAR 16 per unit

Prepare general journal entries to record the March 16 sale using the o FIFO inventory valuation method. o LIFO inventory valuation method.

Answer 1

The working is attached below,

Please refer