UMUC – ACCT 220 EXAM 3 – Part 2 (LEO) This is Part 2 of Exam 3 This is Part 2 of Exam 3. Part 1 is a multiple choice exam and it is located on WileyPlus. Part 1 is a timed exam. You should treat Part 2 (this part) like a Take-home Exam. You can open it, save the document with your filename, work through the problems, add your answers to your saved document and then submit it via the LEO Assignments location for Exam 3 Part 2. Part 2 of the Exam is worth 35 points. It is based on three chapters (Chapters 8-10). You can type in your answers below each question.
Paper For Above instruction Chapter 8: A Bank Reconciliation and Related Journal Entries The problem requires preparing a bank reconciliation for the Flag Company as of October 31, including adjusting entries. The starting point is a ledger cash balance of $125,568, with the bank statement showing $114,828, factoring in deposits in transit, outstanding checks, bank fees, NSF checks, and bank collection of a note receivable. Additional information includes deposit details, check details, bank charges, and NSF checks. Specifically, the tasks involve calculating the adjusted bank and book balances, reconciling differences, and preparing appropriate journal entries to reflect adjustments such as bank service charges, collection of a note receivable, recording NSF checks, and correcting check amounts. Each correct amount earns 1 point, and each correct journal entry is worth 0.5 point. Chapter 9: Adjusting Journal Entries for Allowance for Doubtful Accounts Two scenarios are presented for estimating bad debts: Using the percentage-of-receivables method, with accounts receivable at $900,000 and an estimated uncollectible percentage of 2%. The allowance for doubtful accounts has a credit balance of $3,000. Using the percentage-of-sales method with net credit sales of $400,000 and an estimated uncollectible percentage of 2.5%. The existing allowance balance is $3,500 credit. Your task is to prepare the corresponding adjusting journal entries, considering previous balances and the estimated uncollectibles, and show your calculations for partial credit. Chapter 9: Journal Entries for Notes Receivable