**Question 2.6**LA Fashion records indicate that the balance in their cash account (in the ledger) at the end of the month is $3,918. Comparing the corporation’s records with the monthly bank statement reveals several additional cash transactions, such as a $40 bank service charge, a $500 note receivable collected by the bank plus interest earned of $25, and an NSF (dishonoured) cheque for $250 from a customer. There are also deposits in transit of $3,022, and three outstanding cheques totalling $597.Determine the corporation’s adjusted cash balance. **NOTE:** Enter only the number of dollars, do not enter the dollar, "$", symbol. Therefore if your answer is "$10", enter only "10".(Answer box for input)---**Question 2.7**Prepare the journal entries necessary to adjust the cash account balance based on the information provided in **Question 2.6 (above).**- [Select] 40- [Select] 40- [Select] 500- [Select] 500- [Select] 25- [Select] 25- [Select] 250- [Select] 250(Selection boxes for input) **Read the following information to answer questions 2.1 - 2.2.**LA Fashion has credit sales of $6,400,000 for the financial year ending June 30, 2021, and estimates at the end of the financial year that five per cent of accounts receivable will not be received. Accounts receivable total $3,100,000. The corporation uses the allowance method to account for bad debts, based on the percentage of receivables approach.

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Question 2.6 LA Fashion records indicate that the balance in their cash account (in the ledger) at the end of the month is $3,918. Comparing the corporation's records with the monthly bank statement reveals several additional cash transactions, such as a $40 bank service charge, a $500 note receivable collected by the bank plus interest earned of $25, and an NSF (dishonoured) cheque for $250 from a customer. There are also deposits in transit of $3,022, and three outstanding cheques totalling $597. Determine the corporation's adjusted cash balance. NOTE: Enter only the number of dollars, do not enter the dollar, "$", symbol. Therefore if your answer is "$10", enter only "10".

Question 2.6 LA Fashion records indicate that the balance in their cash account (in the ledger) at the end of the month is $3,918. Comparing the corporation's records with the monthly bank statement reveals several additional cash transactions, such as a $40 bank service charge, a $500 note receivable collected by the bank plus interest earned of $25, and an NSF (dishonoured) cheque for $250 from a customer. There are also deposits in transit of $3,022, and three outstanding cheques totalling $597. Determine the corporation's adjusted cash balance. NOTE: Enter only the number of dollars, do not enter the dollar, "$", symbol. Therefore if your answer is "$10", enter only "10".

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4PA: Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The...

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Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

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