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The following information is available regarding XYZ company's cash account on December 31

The following information is available regarding XYZ company's cash account on December 31

1. The following information is available regarding XYZ company's cash account on December 31 2006.

Balance per bank statement on December 31, 2006 1,800

Balance per book on December 31, 2006 1,900

Outstanding check on December 31, 2006 200

Deposit in Transit on December 31, 2006 100

NSF check on December 31, 2006 200

On December 31, 2006, XYZ's correct cash balance is:

1. 1,800 2. 1,700 3. 1,900 4. 1,600 5. 1,500

2. The following information relate to ABC company's allowance for bad debt:

On January 1, 2006

Account receivable 10,000

Allowance for bad debt 3,000

During 2006

Credit sales 20,000

Cash collection 4,000

Account written off 1,000

Based on its experience, ABC estimated that 3% of credit sales would become uncollectible. The balance of allowance for bad debt on December 31, 2006 was:

1. 2,000 2. 2,500 3. 2,600 4. 2,800 5. 3,600

Roshan kumar 08-Nov-2017

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