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The bank statement for Teal Company contained the following items: a bank service charge of $10; a credit memo for interest earned, $15; and a $50 NSF check from a customer. The company had outstanding checks of $100 and a deposit in transit of $300.
6. Assuming that the unadjusted bank balance was $600, determine the unadjusted book balance. a. $800. b. $555. c. $845. d. $900. (new problem) On January 1, 2007 Grant Company had a $4,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During 2007, Grant provided $25,000 of service on account. The company collected $24,000 cash from account receivable. Bad debts are estimated to be 2% of sales on account. Based on this information, the amount of cash flow from operating activities that would appear on the 2007 statement of cash flows is: a. $24,850. b. $25,000. c. $22,900. d. $24,000. The amount of bad debts expense to recognize on the 2007 income statement is: a. $80. b. $250. c. $480. d. $500. |
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