There are two parts of this question

Part one

Shoe City Pty Ltd's bank reconciliation clerk is unable to reconcile the bank balance at 31 January. The balance of the cash at bank account, before any entries for transactions initiated by the bank, was $4,963.00in the company records. The clerk's attempt at the bank reconciliation statement is as follows:

Cash balance as per bank statement$4,429.00Add: Dishonoured cheque555.00Less: Bank charges27.00Less: Outstanding deposits760.00Add: Unpresented cheques808.00Cash balance as per company records$5,005.00

Required:

Prepare correct bank reconciliation.

Part Two

On 30 June Crawford Company estimated that 1.5% of its net sales of $400,000 will become uncollectable. The company recorded this amount as an addition to Allowance for doubtful debts. On 11 November Crawford Company determined that Kevin Hayes's account was uncollectable and wrote off $1,100. On 12 December Hayes paid the amount previously written off.

Required:

Prepare the journal entries on 30 June, 11 November, and 12 December