Assignemnt
1. Classify the following items as (a) an addition to the bank balance, (b) a subtraction from the bank balance, (c) an addition to the book balance, or (d) a subtraction from the book balance:
Deposits in transit
Non-sufficient funds check
Outstanding checks
Bank Service Charge
Bank Error: the bank debited our account for a deposit made by another customer
2. During 2013, Jimmy Enterprises completed the following transactions:
a. Sales revenue on account, $620,000.
b. Collections on account, $365,000
c. Write-offs of uncollectibles, $15,000
d. Uncollectible account expense, 4% of sales revenue
Required:
1. Start with an accounts receivable balance of $435,000 and post the above entries to the Accounts Receivable T-Account.