The cash account of gate city security systems reported a balance of $ 2 comma 520 at december 31, 2018. there were outstanding checks totaling $ 400 and a december 31 deposit in transit of $ 200. the bank statement, which came from tri cities bank, listed the december 31 balance of $ 3 comma 350. included in the bank balance was a collection of $ 640 on account from nicole lee, a gate city customer who pays the bank directly. the bank statement also shows a $ 20 service charge and $ 10 of interest revenue that gate city earned on its bank balance. prepare gate city's bank reconciliation at december 31.

The manda panda company uses the allowance method to account for bad debts. at the beginning of 2018, the allowance account had a credit balance of $92,400. credit sales for 2018 totaled $3,190,000 and the year-end accounts receivable balance was $507,500. during this year, $88,500 in receivables were determined to be uncollectible. manda panda anticipates that 3% of all credit sales will ultimately become uncollectible. the fiscal year ends on december 31. required: 1. does this situation describe a loss contingency? 2. what is the bad debt expense that manda panda should report in its 2018 income statement? 3. prepare the appropriate journal entry to record the contingency. 4. complete the table below to calculate the net realizable value manda panda should report in its 2018 balance sheet?