On October 31, 2015, Damon Company?s general ledger shows a checking account balance of $8,418. The company?s cash receipts for the month total $74,460, of which $71,330 has been deposited in the bank. In addition, the company has written checks for $72,488, of which $71,108 has been processed by the bank.

The bank statement reveals an ending balance of $12,238 and includes the following items not yet recorded by Damon: bank service fees of $220, note receivable collected by bank of $5,700, and interest earned on the account balance plus from the note of $670. After closer inspection, Damon realizes that the bank incorrectly charged the company?s account $580 for an automatic withdrawal that should have been charged to another customer?s account. The bank agrees to the error.

\fSolution : Date Account Title oct/31/2015 Cash Interest Revenue oct/31/2015 Cash Note Receivable oct/31/2015 Bank Charges Cash Debit Credit 670 670 5700 5700 220 220