1. Ten days ago a company established a $90 petty cash fund. Today, October 5, the petty cash box contains $3 in cash and the following paid petty cash receipts: transportation - in, $14.25; postage, $34.50; and office supplies, $36.Give the entry to reimburse the fund and to increase its size to $150.

2.Summerville, Inc. has the following account balances at December 31, 2005:Accounts Receivable $185,600 and Allowance for Doubtful Accounts $1,600 (credit balance).Summerville, Inc. uses the aging of accounts receivable to estimate bad debts.The following aging schedule reflects the situation at year-end:

Estimated

Account Age Age group Balance Uncollectible percentage

Current $96,000 2.0

1-30 days past due 64,000 5.0

31-60 days past due 16,000 15.0

61-90 days past due 6,400 35.0

Over 90 days past due 3,200 45.0

(1)Calculate the amount of the Allowance for Doubtful Accounts that should appear on the December 31, 20X5, balance sheet.

(2)Prepare the journal entry to record 20X5 bad debts expense.