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Question 2 (20 points) On May 31, 2019, Terry Duffy Company had a cash balance per books of $6,781.50. The bank statement from Farmers State

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Question 2 (20 points) On May 31, 2019, Terry Duffy Company had a cash balance per books of $6,781.50. The bank statement from Farmers State Bank on that date showed a balance of $6.804.60. A comparison of the statement with the cash account revealed the following facts. 1. The statement included a debit memo of $40 for the printing of additional company checks. 2. Cash sales of $836.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $886.15. The bank credited Duffy Company for the correct amount 3. Outstanding checks at May 31 totaled $276.25. Deposits in transit were $1,916.15. 4. On May 18, the company issued check No. 1181 for $685 to Barry Trest, on account. The check, which cleared the bank in May was incorrectly journalized and posted by Duffy Company for $658. 5. A $3,000 note receivable was collected by the bank for Duffy Company on May 31 plus $80 interest. The bank charged a collection fee of $20. No interest has been accrued on the note. 6. A check issued by Bridgetown Company to Tom Lujak for $600 was incorrectly charged to Dufry Company by the bank. 7. On May 31, the bank statement showed an NSF charge of $680 for a check issued by Sandy Grifton, a customer, to Duffy Company on account. Required (If you would rather complete your bank reconciliation on paper, instead of trying to figure out how to format it here, please feel free to do so and submit it through the Final Exam Work Dropbox.): a. Prepare a bank reconciliation for Terry Duffy Company at May 31, 2019 (please be sure to label). b. Prepare the required journal entries for cash at May 31, 2019 (use [D] to label all debits and [C] to label all credits)

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