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Question
The bank statement for Jeffrey Co. indicates a balance of $8,785 on October 31. The cash balance according to the company’s records is $8,998. The following additional data were gathered to use in reconciling the bank account:
(1) Cash sales of $945 had been erroneously recorded in the cash receipts journal as $495.
(2) Deposits in transit not recorded by bank, $778.
(3) Bank debit memo for service charges, $40.
(4) Bank credit memo for note collected by bank, $23,985 plus $885 interest.
(5) Bank debit memo for $756 NSF (not sufficient funds) check from Calin Sams, a customer.
(6) Checks outstanding, $1,860.
Journalize any necessary entries for Jeffrey Co. based on the bank reconciliation data.
Answer
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