Here's the relevant code. I've confirmed with the alert that the correct number is saved, it's just not being changed to 2 decimal places.
if ($(this).attr('name') == 'time') {
var value = $(this).val();
parseFloat(value).toFixed(2);
alert(value);
editEntry.time = value;
}
You're not assigning the parsed float back to your value var:
value = parseFloat(value).toFixed(2);
should fix things up.