neg: mpany established a petty cash fund in November of the current year and experienced the following transactions affecting the fund during November: v.1 Established a $200 petty cash fund. Paid $55 to acquire office supplies. Reimbursed the company controller for $30 spent on beverages for recruits (entertainment expense). Paid $45 for postage. Paid $25 for C.O.D. charges on merchandise inventory, terms FOB shipping point. Paid $40 for janitorial services. When sorting the petty cash receipts to replenish the fund, the custodian noted that there was $10 cash remaining. 18 20 25 28 Prepare the journal entries to establish the fund on November November 28. i and to reimburse the fund on 4. White Company allows customers to make purchases on credit. The terms of all credit sales are 2/10, n/30, and all sales are recorded at the gross price. Other customers can use a bank credit card where the bank deducts a 4% service charge for credit card sales and credits the bank account of White immediately when credit card receipts are deposited. White uses the perpetual inventory method. Prepare journal entries to record the following selected transactions and events. June 4 Sold $12,000 of merchandise (cost $7.000) on credit to Grant. Sold $17,000 of merchandise (cost $9,350) to customers who used a bank credit card, receipts were processed and deposited the same day. Sold $8,500 of merchandise (cost $4.500) on credit to Emma Company. Accepted a $6,70o, 45-day, 6% note dated this day in granting Cory Tam a time extension on his past-due account receivable. Received Grant's check in full payment of the purchase on June 4. Wrote off the account of Z. Westmore against the Allowance for Doubtful Accounts. The $1,580 balance stemmed from a credit sale in January. Accepted a $6,240, 30-day, 10% note dates this day in granting F. Potter a time extension on his past-due account receivable. Received the amount previously written-off from Z. Westmore. F. Potter dishonored his note when presented for payment. Received payment of principal plus interest from Cory Tam. 18 10 12 15 July 17 20 25 5. Fach December 31, Kimura Company ages its accounts receivable to determine the amount of its adiustment for bad debts. At the end of the current year, management estimated that $16,900 of the accounts receivable balances would be uncollectible. The Allowance for Doubtful Accounts account had a debit balance of $1,200 before any year-end adjustment for bad debts. Prepare the adjusting journal entry that Kimura Company should make on December 31, of the current year. 6. At December 31 of the current year, a company reported the following: Total sales for the current vear: $980,000 includes $160,000 in cash sales Accounts receivable balance at Dec. 31, end of current year: $160,000 Allowance for Doubtful Accounts balance at January 1, beginning of current year: $7,300 credit Bad debts written off during the current year: $5,800. Prepare the necessary adjusting entries to record bad debts expense assuming this company's bad debts are estimated to equal 5% of accounts receivable