ACC 231 ASU EXAM 3 LATEST
WOLFE
Bank Reconciliations - ANSWERS--Reconcile timing differences
between bank's records and company's records
-Detect errors in bank or company records
-Great internal controls since they are two independent records of cash
Reconciling Items Affecting Bank's Cash Balance - ANSWERS--
Outstanding checks written by the company
-Deposits in transit made by the company
Outstanding Checks Adjustment - ANSWERS-bank's cash balance -
outstanding checks amount
Deposits in Transit Adjustment - ANSWERS-bank's cash balance +
deposit amount
Reconciling Items Affecting Company's (book's) Cash Balance -
ANSWERS--Bank Service Fees
-Earned interest
-NSF Checks
END OF
PAGE
1
, ACC 231 ASU EXAM 3 LATEST
WOLFE
Bank Service Fees Adjustment - ANSWERS-book's cash balance - bank
service fee
Earned Interest Adjustment - ANSWERS-book's cash balance + earned
interest
NSF Checks Adjustment - ANSWERS-book's cash balance - NSF
checks
Net Accounts Receivable Calculation - ANSWERS-Accounts
Receivable - Allowance for Doubtful Accounts
Allowance for Doubtful Accounts - ANSWERS-is a contra asset account
so CR to increase the balance of it
Accounts Receivable - ANSWERS--is the amount due by customers
who purchased on credit
-there is a risk that the customer will not pay
END OF
PAGE
2
WOLFE
Bank Reconciliations - ANSWERS--Reconcile timing differences
between bank's records and company's records
-Detect errors in bank or company records
-Great internal controls since they are two independent records of cash
Reconciling Items Affecting Bank's Cash Balance - ANSWERS--
Outstanding checks written by the company
-Deposits in transit made by the company
Outstanding Checks Adjustment - ANSWERS-bank's cash balance -
outstanding checks amount
Deposits in Transit Adjustment - ANSWERS-bank's cash balance +
deposit amount
Reconciling Items Affecting Company's (book's) Cash Balance -
ANSWERS--Bank Service Fees
-Earned interest
-NSF Checks
END OF
PAGE
1
, ACC 231 ASU EXAM 3 LATEST
WOLFE
Bank Service Fees Adjustment - ANSWERS-book's cash balance - bank
service fee
Earned Interest Adjustment - ANSWERS-book's cash balance + earned
interest
NSF Checks Adjustment - ANSWERS-book's cash balance - NSF
checks
Net Accounts Receivable Calculation - ANSWERS-Accounts
Receivable - Allowance for Doubtful Accounts
Allowance for Doubtful Accounts - ANSWERS-is a contra asset account
so CR to increase the balance of it
Accounts Receivable - ANSWERS--is the amount due by customers
who purchased on credit
-there is a risk that the customer will not pay
END OF
PAGE
2
