Question $12$

Foresight Computer Services have a large total in their Undeposited

Funds account. Their income seems very high compared to previous

periods. After investigating, you see that they have been receiving

payments from customers and recording deposits using bank feeds,

posting directly to an income account. They need to produce

monthly financial statements for their bank, and have hundreds of

payments in the Undeposited Funds account for a six$-$month period.

What is the quickest way to fix this type of error?

Make a journal entry to credit sales and debit Undeposited Funds for each

month

Create one deposit, then select all the outstanding payments. Add a new

deposit line, select the appropriate income accounts, and enter the total

amount of the selected payments as a negative so that the deposit total is

zero

Make a journal entry to debit sales and credit Undeposited Funds for each

month

Edit each deposit and check the appropriate payment$($s$),$ then delete the

sales entry. Make sure the total deposit amount doesn't change. Repeat until

all payments have been assigned to the appropriate deposit

Create a monthly deposit, selecting all the payments for that month on the

deposit screen. Select Add funds to this deposit grid and enter the

appropriate income account$($s$),$ descriptions, and amounts as negative

numbers to offset the total so that the deposit total is zero. Repeat for all six

months