Flat is defined as the difference between the balance shown on the books and the balance in the bank account. A lag often occurs between the time receipts and disbursements are recorded on the company's books and when the transactions clear the bank. Consider the following scenario: The accountant for Sandberg Co. is reconcling the company's bank statement. A total difference of $20,000 needs to be analyzed. What type of fioat does this scenario describe? Net float. Disbursement float Coliection flost Next, consider the case of Windsor Flooring Company; The management at Windsor flooring has determined that it takes an average of sox days for checks the compary writes to clear its bank account. Cash receipts from customers are refiected in Windsor's bank account an average of four days after the checks are received. On an average day, Windsar writes checks that total 520,000 , and it receives checks from customers that total $30,000. Compute the collection fioat, the disbursement float, and the net flost in dollars in the following table. (Note: By definition, coliection float is always. considered fegotive, and disbursement float is always positive. Both should be shown as posirive numbers here. The net foat, however, should be thown as positive if it is fovorable and as negative if it is unfavorable.) Given this information, you can deduce that on an average day. Windsor Fooring's bank baiance is its book balance