PROBLEM $2$

Davis Company is preparing its February $29,2024$ bank reconciliation statement. The following information was determined:

Cash balance per accounting books, Feb. $28,20$x$1$

$P260,000$

$P205,000$

When investigating the difference, the accountant determined the following:

A customer deposited P$30,000$ to Davis's bank account as payment for an account receivable. This is not yet recorded in the books of accounts.

A check amounting to P$102,500$ deposited by Davis during the month is not yet credited to its account.

A check drawn in the amount of $22,500$ has not yet been presented to the bank for payment.

The bank returned a check deposit amounting to P$5,000$ because of insufficiency in the funds of the drawer. The check was received from a customer as payment for accounts receivable.

Requirements:

Prepare the bank reconciliation.

Prepare the adjusting $($reconciling$)$ entries.