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On August 31, 2021, Ivanhoe Company had a cash balance per its books of $26,430. The bank statement on that date showed a balance of

On August 31, 2021, Ivanhoe Company had a cash balance per its books of $26,430. The bank statement on that date showed a balance of $16,800. A comparison of the bank statement with the Cash account revealed the following.

1. The August 31 deposit of $17,630 was not included on the August bank statement.
2. The bank statement shows that Ivanhoe received EFT deposits from customers on account totalling $2,170 in August. Ivanhoe has not recorded any of these amounts.
3. Cheque #673 for $1,450 was outstanding on July 31. It did not clear the bank account in August. All of the cheques written in August have cleared the bank by August 31, except for cheque #710 for $2,360, and #712 for $2,450.
4. The bank statement showed on August 29 an NSF charge of $380 for a cheque issued by R. Dubai, a customer, in payment of their account. This amount included an $11 service charge by Ivanhoes bank. The companys policy is to pass on all NSF service charges to the customer.
5. Bank service charges of $23 were included on the August statement.
6.

The bank recorded cheque #705 for $69 as $96. The cheque had been issued to pay for freight out on a sale. Ivanhoe had correctly recorded the cheque.

Prepare the necessary adjusting entries on August 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

Aug. 31

enter an account title to record electronic receipt from customer on account on August 31 No EntryCashAccounts PayableSuppliesAccounts Receivable

enter a debit amount

enter a credit amount

enter an account title to record electronic receipt from customer on account on August 31 Accounts ReceivableAccounts PayableNo EntryCashSupplies

enter a debit amount

enter a credit amount

(To record electronic receipt from customer on account)

Aug. 31

enter an account title to record NSF cheque and bank service charge expense on August 31 No EntryBank Charges ExpenseAccounts ReceivableAccounts PayableCash

enter a debit amount

enter a credit amount

enter an account title to record NSF cheque and bank service charge expense on August 31 CashNo EntryAccounts PayableBank Charges ExpenseAccounts Receivable

enter a debit amount

enter a credit amount

enter an account title to record NSF cheque and bank service charge expense on August 31 Accounts PayableBank Charges ExpenseNo EntryAccounts ReceivableCash

enter a debit amount

enter a credit amount

(To record NSF cheque & bank service charge expense)

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