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lux Transportation Services has just received its bank statement for the month and has compared it to the general ledger cash account. GENERAL LEDGER Account:

lux Transportation Services has just received its bank statement for the month and has compared it to the general ledger cash account.

GENERAL LEDGER

Account: Cash

Gl No: 101

Date

Description

Debit

Credit

Balance

Oct 1

Opening Balance

13,100

DR

Oct 2

Check #401

750

12,350

DR

Oct 5

Check #220

900

13,250

DR

Oct 8

Check #403

750

12,500

DR

Oct 16

Check #404

200

12,300

DR

Bank Statement

Date

Description

Withdrawal

Deposit

Balance

Oct 1

Oct 2

Oct 6

Oct 6

Oct 10

Oct 16

Oct 30

Oct 31

Opening Balance

Check #401

Check #220

EFT Rent Payment

Check #403

Check #88

Interest

Service Charge

750

750

750

110

900

445

50

13,100

12,350

13,250

12,500

11,750

12,195

12,245

12,135

Prepare the bank reconciliation for Lux Transportation as at October 31, 2018.

analysis:

After some investigation, it is discovered that Check #88 is not from a customer and should not have been deposited into the companys bank account by the bank. How does this discovery change the bank reconciliation and any necessary journal entries?

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