1. Crystal Products allows customers to use bank credit cards to charge purchases. The bank used by Crystal Products processes all bank credit cards in exchange for a 3% processing fee. All credit card receipts deposited are credited to the company account on the day of deposit. Assume that on January 18, Crystal Products sold and deposited $19,000 worth of bank credit card receipts. Prepare the general journal entry to record this transaction. (The company uses Credit Card Fees Expense to record all processing fees.)

2. On March 31, 2013, Home Decorating Pavilion received a bank statement containing a balance of $9,750. The balance in the firm's checkbook and Cash account on the same date was $10,290. The difference between the two balances is caused by the items listed below.

a. A $2,875 deposit made on March 30 does not appear on the bank statement.
b. Check 358 for $485 issued on March 29 and Check 359 for $1,650 issued on March 30 have not yet been paid by the bank.
c. A credit memorandum shows that the bank has collected a $1,100 note receivable and interest of $110 for the firm.
d. A service charge of $25 appears on the bank statement.
e. A debit memorandum shows an NSF check for $525. (The check was issued by Dane Smithey, a credit customer.)
f. The firm's records indicate that Check 341 of March 1 was issued for $900 to pay the month's rent. However, the canceled check and the listing on the bank statement show that the actual amount of the check was $800.
g. The bank made an error by deducting a check for $560 issued by another business from the balance of Home Decorating Pavilion's account.

Instructions:

1. Prepare a bank reconciliation statement for the firm as of March 31, 2013.
2. Record entries for any items on the bank reconciliation statement that must be journalized. Date the entries March 31, 2013. Use page 4 of a general journal.