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13 December, 13:59

A bank reconciliation revealed bank charges of $11, outstanding checks of $221, and NSF checks of $90. The journal entry to cause the company records to match the correct adjusted ending cash balance includes:

Credit cash for a total of $90

Credit cash for a total of 101

Credit cash for a total of 322

Credit cash for a total of 11

None of the above

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Answers (1)
  1. 13 December, 14:03
    0
    None of the above

    Explanation:

    because checks were issued therefore bank should be credited not cash.

    entry of bank charges will be: Dr bank charges $11

    Cr bank $11

    Entry of Outstanding check is: Dr Account payable $221

    Cr Bank $221

    but to correct balance entry will be adjusted to:Dr Bank 221

    Cr Account payable 221.

    Entry of 90$: Dr Account Payable $90

    Cr Bank $90

    but when we realize to know about NSF we adjust entry to

    Dr Bank $90

    Account payable $90

    Correct balance = 221+90-11=$300 for the period.
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