Calculate the amount of the Allowance for Doubtful Accounts that should appear o

Question

Calculate the amount of the Allowance for Doubtful Accounts that should appear on the December 31, of the current year, balance sheet. Prepare the adjusting journal entry to record bad debts expense for the current year. Acorn Company is starting a Petty cash fund. On November 1, 2015 they funded the Petty cash fund with $250. On November 30 they had the following: Receipt dated 11/6 for $42 of Postage Receipt dated 11/10 for $62 for Food for a customer appreciation party Receipt dated 11/16 for $50 for Window cleaning Receipt date 11/20 for $15 reimbursement for gas for the manager to go to a meeting There was $75 remaining in the Petty cash fund on 11/30. What are the necessary Journal entries that Acorn needs for November?

Explanation / Answer

Acorn Company created a petty cash fund of $250 on November 1, 2015. The journal entry is:

Petty Cash 250

Cash at Bank 250

The journal entry to record the about disbursements from petty cash is:

postage 42

Food for customer appreciation party 62

Window cleaning   50

Reimbursement 15

Petty Cash   169

The company replenished the fund via a check of $169 . The journal entry is:

Petty Cash 169

Cash at Bank 169

There was $75 remaining in petty cash fund on November 30, 2015

Petty Cash 75

Cash at Bank 75

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