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Summary: Intemal Control and Cash Explanation: BC - bank collection of note receivable from customer, EFT - electronic funds transfer, US - unauthorized signature, SC
Summary: Intemal Control and Cash
Explanation: BCbank collection of note receivable from customer, EFTelectronic funds transfer,
USunauthorized signature, SCservice 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 a payment on account, is $Duffy Automotive's accountiit mistakenly recorded the check as $
Requirements
Prepare Duffy Automotive's bank reconciliation at May
Prepare the journal entries required at May
Describe how a bank account and the bank reconciliation help the general manager control Duffy Automotive's cash.
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