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Question 3

The following information is for Blossom Video Company:

1.Cash balance per bank, July 31, $7,000.

2.July bank service charge NOT recorded by the depositor, $20.

3.Cash balance per books, July 31, $7,000.

4.Deposits in transit, July 31, $1,000.

5.Bank collected $500 note for Blossom in July, plus interest $32, less fee $12. The collection has not been recorded by Blossom, and no interest has been accrued.

6.Outstanding cheques, July 31, $500.