Accounting Assignment

. What is a bank reconciliation and why is it important for companies to do it periodically?
B. Prepare a Bank Reconciliation Statement for XYZ company that has:
• Bank statement of $10,000.
• Cash account of $8,500.
Additional information for the reconciliation:
 Deposit in transit.
 NSF Check.
 Outstanding check.
 Collections made by the bank.
 Bank error
 Books error
Required: provide an amount of each information to bring the adjusted balances to be equal.
Q2-
Assume that you have a company. And the management estimates that 5% of sales will be uncollectible.
Give any amount of sales and prepare the journal entry using the percent of sales method.