Poor internal control over its cash transactions are becoming a problem for the Hogan Company. The following are facts about its cash position on October 31:

• The company's books showed a balance of $19,004.62, which included undeposited receipts.
• A credit of $200 on the bank statement is not included in the company's books.

The bank statement's balance was $15,650.Outstanding checks were:

Check number amount

NO.225 for $126

NO.289 for 140.00

NO. 292 for 263.25

NO.8511 for 180.71

NO.8632 for 216.80

NO.8791 for 135.28

The only deposit was for $3,797.41 on November 7. The cashier personally handles all incoming cash and bank deposits. He is responsible for reconciling the monthly bank statement as well. The November 30 reconciliation: Balance per books, October 31: $19,004.62 Add: Outstanding Checks:

Check Number Amount

8622 $190.23

8623 176.80

8632 75.28

Total 19446.93

Balances Amount

less undeposited receipts $ 3797.41

balance per bank, october 31 15649.52

deduct unrecorded credit 200.00

true cash, october 31 15449.52

Required:

You're suspicious that the cashier may have pocketed some money and suspect that some of the un-deposited receipts of $3,797.41 may have been taken.set up a schedule presenting your estimate of the loss.