Monday, June 25, 2012

What is the adjusting journal entry under the periodic inventory method? -

Upon reviewing the bank reconciliation, you realized that the general ledger had not been adjusted for $500 worth of NSF checks received for cash sales during the year that were recorded but which later bounced. The individual checks were for small amounts and the company does not expect to be able to collect the funds due.

credit cash $500.00 debit sales $500.00

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