Reference no: EM13657094

1. Classify the following items as (a) an addition to the bank balance, (b) a subtraction from the bank balance, (c) an addition to the book balance, or (d) a subtraction from the book balance:

_____ $20 in service charges

_____ A $300 check deposited that was returned NSF

_____ An outstanding check that you wrote for $2,000

_____ A deposit in transit of $5,500

_____ Bank Error: the bank credited your account for a deposit made by another customer


2. During 2013, Jimmy Enterprises completed the following transactions:
a. Sales revenue on account, $550,000.
b. Collections on account, $325,000
c. Write-offs of uncollectibles, $13,000
d. Uncollectible account expense, 5% of sales revenue
Required:
1. Prepare the journal entries for the above transactions.