Question

Question 1 August 1, 2019, Magic Cleaning Incorporated established a petty fund of $200. By the end of August there was $7 cash on hand and the fund contained the following petty cash tickets: • Delivery, $64.00 • Freight, $45.00 Supplies, $15.00 • Postage, $6.00 • Catering, $55.00 . Required Prepare the journal entries in the template below to record the establishment and replenishment of the petty cash fund. Explanations are not required. DATE ACCOUNT DEBIT CREDIT

Answer 1

<<As per the HOMEWORKLIB RULES, when more than one question is posted, Only one shall be answered>>

Solution:

1.

	Account Titles	Dr($)	Cr($)
1	Petty Cash	200
	Cash		200
	(To record the Establishment of petty cash fund)
2	Delivery expenses	64
	Freight	45
	Supplies expense	15
	Postage expense	6
	Catering expense	55
	Cash short	8
	Cash		193
	(To record the replenishment of petty cash fund)

3.

a)

	Account Titles	Dr($)	Cr($)
1	Accounts receivable	52,000
	Sales Revenue		52,000
2	Cash	70,000
	Accounts receivable		70,000
3	Allowance for Doubtful accounts	3,300
	Accounts receivable		3,300
4	Cash	900
	Bad Debts recovered		900
5	Bad Debts	5,300
	Allowance for Doubtful accounts		5,300

Particulars	$
Opening Accounts Receivable	45,000
Add: Credit Sales	52,000
Less: Collections	(70,000)
Less: Uncollectible receivables	(3,300)
Closing Accounts receivable	23,700

Particulars	$
Allowance for doubtful accounts	8,000
Less: Uncollectible receivables	(3,300)
	4,700
Add: Increase in allowance (B/fig)	5,300
Closing Allowance estimated for current month	10,000

Accounts receivable	23,700
Less: Allowance for doubtful doubts	(10,000)
Net Accounts receivable	33,700