Summary: Intemal Control and Cash

Explanation: BC$-$bank collection of note receivable from customer, EFT$-$electronic funds transfer,

US$-$unauthorized signature, SC$-$service charge

Additional data for the bank reconciliation include the following:

a$.$ The EFT. deposit was a receipt of monthly rent. The EFT debit was a monthly insurance payment.

b$.$ The unauthorized signature check was received from a customer and returned by the bank unpaid.

c$.$ The correct amount of check number $3115,$ a payment on account, is $$1,390.($Duffy Automotive's accounti$]$it mistakenly recorded the check as $$1,930.)$

Requirements

Prepare Duffy Automotive's bank reconciliation at May $31,2021.$

Prepare the journal entries required at May $31,2021.$

Describe how a bank account and the bank reconciliation help the general manager control Duffy Automotive's cash.