Finman Company designated Jill Holland as petty cash custodian and established a petty cash fund of $396. The fund is reimbursed when the cash in the fund is at $28. Petty cash receipts indicate funds were disbursed for office supplies $97 and miscellaneous expense $267. Prepare journal entries for the establishment of the fund and the reimbursement.

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Q 2

Wilton, Inc. had net sales in 2014 of $1,414,900. At December 31, 2014, before adjusting entries, the balances in selected accounts were: Accounts Receivable $332,100 debit, and Allowance for Doubtful Accounts $3,380 credit. If Wilton estimates that 3% of its net sales will prove to be uncollectible. Prepare the December 31, 2014, journal entry to record bad debt expense.

No. Account Titles and Explanation Debit Credit 2