The following information pertains to Blossom Company. 1. Cash balance per books, August 31, $7,374.
2. Cash balance per bank, August 31, $7,338.
3. Outstanding checks, August 31, $710.
4. August bank service charge not recorded by the depositor $62.
5. Deposits in transit, August 31, $3,810.

In addition, $3,126 collected for Blossom Company in August by the bank through electronic funds transfer. The accounts receivable collection has not been recorded Blossom Company.
ournalize the adjusting entries at August 31 on the books of Blossom Company

Journal entries for adjustments made. These concern transactions that the company did not record as they dealt directly with the bank.

1.

Details                                                                Debit                   Credit

Cash                                                                  $3,126

Accounts Receivable                                                                   $3,126

(To record collection of Accounts Receivable)

2.

Details                                                                Debit                  Credit

Bank Service Charge                                       $62

Cash                                                                                                $62

(To record bank service charges)

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