Question
Bank Reconciliation Garrison Corporation was closing its books on May 31, 2020. Garrison's accountant prepared a bank reconciliation as of May 31, 2020, and has
Bank Reconciliation
Garrison Corporation was closing its books on May 31, 2020. Garrison's accountant prepared a bank reconciliation as of May 31, 2020, and has found the following possible reconciling items between its book balance and its cash balance per the bank:
Garrison's book balance $12,930
Outstanding checks $960
Customer's NSF check returned by the bank $190
Interest earned on checking account $80
In the search for reconciling items, the accountant also discovered that Garrison made an error in recording a customer's check: the amount was recorded in cash receipts as $320; the bank recorded the amount correctly as $920.
Required:
What amount will Garrison report as its adjusted cash balance at May 31, 2020?
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