a Transactions for August 2024 1 Paid $785 cash for office supplies. 2 Purchased merchandise on account for $835 4 Collected $5,700 cash from customers on account. 7 Received a $600 invoice for radio advertising on account. 8 Established a petty cash fund for $250. 11 Received $7,350 cash for performing coaching services. 15 Paid previous month's salaries 17 Collected $2,000 in advance for coaching services to be performed later. 20 Completed a large coaching job and billed the customer for $6,575. 22 Received the electric bill and cell phone bill for the business totaling $725. (Credit Accounts Payable) 25 Collected $2,500 cash from customers on account. 27 Sold merchandise to customers for $3,800 on account. The merchandise cost $1,680. 30 Paid $3,350 on account. 31 Cash dividends of $2,700 were paid to stockholders. Adjusting Entries Depreciation method on the truck was changed to the units of production method in August. Depreciation was recorded assuming a useful life of five years, salvage value of $3,000 and estimated miles of 100,000. The truck was used 2,400 miles in August. b Prepaid Insurance for the month has expired. C Office Supplies on hand, $545 d e f Unearned Revenue earned during the month, $1,100. Another month of rent has expired The company records bad debt using the percent of receivables method estimating that 2% of receivables will not be collected. Bad debt is calculated after all regular entries are recorded. g Accrued payroll expense for August h Accrued payroll tax expense for August