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The cash account for American Medical Co. at April 30 indicated a balance of $14,730. The bank statement indicated a balance of $17,190 on April
The cash account for American Medical Co. at April 30 indicated a balance of $14,730. The bank statement indicated a balance of $17,190 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
- Checks outstanding totaled $6,190.
- A deposit of $6,450, representing receipts of April 30, had been made too late to appear on the bank statement.
- The bank collected $3,350 on a $3,180 note, including interest of $170.
- A check for $770 returned with the statement had been incorrectly recorded by American Medical Co. as $700. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account.
- A check drawn for $60 had been erroneously charged by the bank as $600.
- Bank service charges for April amounted to $20.
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