An evaluation of the books of Blair​ Supply ​, gives the​ end-of-year accounts receivable​ balance

An evaluation of the books of Blair​ Supply ​, gives the​ end-of-year accounts receivable​ balance, which is believed to consist of amounts originating in the months indicated. The company had annual sales of $2.40 million. The firm extends 30​-day credit terms.

a. Use the​ year-end total to evaluate the​ firm's collection system.

b. If 70% of the​ firm's sales occur between July and​ December, would this affect the validity of your conclusion in part a​? Explain.

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Spielberg Company's general ledger shows a checking account balance of $22,970 on July 31, 2018

Spielberg Company's general ledger shows a checking account balance of $22,970 on July 31, 2018. The July cash receipts of $1,885, included in the general ledger balance, are placed in the night depository at the bank on July 31 and processed by the bank on August 1. The bank statement dated July 31 shows bank service fees of $55. The bank processes all checks written by the company by July 31 and lists them on the bank statement, except for one check totaling $1,460. The bank statement shows a balance of $22,490 on July 31.

Required:

1. Prepare a bank reconciliation to calculate the correct ending balance of cash on July 31, 2018.

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