Asked by Santiago Quirós on May 13, 2024
Verified
Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300. This item would be included on the bank reconciliation as a (n)
A) deduction from the balance per company's records
B) addition to the balance per bank statement
C) deduction from the balance per bank statement
D) addition to the balance per company's records
Bank Reconciliation
The process of matching and comparing figures from accounting records against those presented on a bank statement.
Cash Sales
Transactions in which a customer pays for goods or services at the point of sale with cash, resulting in immediate revenue for the seller.
Cash Receipts Journal
The special journal in which all cash receipts are recorded.
- Understand the mistakes made in logging transactions and the entries required to correct them.
Verified Answer
CL
Cielo LaresMay 14, 2024
Final Answer :
D
Explanation :
The error in recording the cash sales too low means the company's records show less cash than actually received. Correcting this error involves adding the difference ($900) to the company's records to match the actual cash amount.
Learning Objectives
- Understand the mistakes made in logging transactions and the entries required to correct them.
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