Problem 1 The cash account of Aguilar Co. showed a ledger balance of $3,969.85 on June 30, 2017. The bank statement as of that date showed a balance of $4,150. Upon comparing the statement with the cash records, the following facts were determined. 1. There were bank service charges for June of $25. 2. A bank memo stated that Bao Dai's note for $1,200 and interest of $36 had been collected on June 29, and the bank had made a charge of $5.50 on the collection. (No entry had been made on Aguilar's books when Bao Dai's note was sent to the bank for collection.) 3. Receipts for June 30 for $3,390 were not deposited until July 4. Checks outstanding on June 30 totaled $2,136.05. 5. The bank had charged the Aguilar Co.'s account for a customer's uncollectible check amounting to $253.20 on June 29. 6. A customer's check for $90 (as payment on the customer's Accounts Receivable) had been entered as $60 in the cash receipts journal by Aguilar on June 15. 7. Check no. 742 in the amount of $491 had been entered in the cash journal as $ 419, and check no. 747 in the amount of $58.20 had been entered as $582. Both checks had been issued to pay for purchases and were payments on Aguilar's Accounts Payable. Instructions (a) Prepare a bank reconciliation dated June 30, 2017, proceeding to a correct cash balance. (b) Prepare any entries necessary to make the books correct and complete. A trial balance before adjustment included the following: Credit Debit $80,000 Accounts receivable Allowance for doubtful accounts Sales Sales returns and allowances 730 $340,000 8,000 Give journal entries assuming that the estimate of tibles is determined by taking (1) 5% of gross accounts receivable and (2) 1% of net sales. A trial balance before adjustment included the following: Credit Debit $80,000 Accounts receivable Allowance for doubtful accounts Sales Sales returns and allowances 730 $340,000 8,000 Give journal entries assuming that the estimate of uncollectibles is determined by taking (1) 5% of gross accounts receivable and (2) 1% of net sales