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Question -
1. Cookie and Gato show on their January 31st bank statement deposits in transit of $5,500, the general ledge cash in bank account shows total cash receipts of $45,000 in February. The February bank statement shows 39,500 in total cash deposits. In addition Cookie wrote a check for $1,000 to "Tuna and the Rock Cats" for the gig they played at his and Gato's party that has not yet cleared. What amount of deposits/payments in transit should appear on the February bank reconciliation?
2. Cookie and Gato estimate that 5% of their $350,000 credit sales will be uncollectible. Complete the journal entry used to record this estimate.
3. Cookie and Gato purchased a new truck for $55,000 putting down 10% and financing the rest. Complete the journal entries for this transaction.
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