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Bug-Off Exterminators provides pest control services and sells extermination products manufactured by other companies. The following six-column table contains the company's unadjusted trial balance as of December 31, 2017.
Bug-Off Exterminators provides pest control services and sells extermination products
The following information in a through h applies to the company at the end of the current year.
a. The bank reconciliation as of December 31, 2017, includes the following facts.
Cash balance per bank ..................................$15,100
Cash balance per books ................................. 17,000
Outstanding checks ...................................... 1,800
Deposit in transit .......................................... 2,450
Interest earned (on bank account) ..................... 52
Bank service charges (miscellaneous expense) ...... 15
Reported on the bank statement is a canceled check that the company failed to record. (Information from the bank reconciliation allows you to determine the amount of this check, which is a payment on an account payable.)
b. An examination of customers' accounts shows that accounts totaling $679 should be written off as uncollectible. Using an aging of receivables, the company determines that the ending balance of the Allowance for Doubtful Accounts should be $700.
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