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28 May, 18:12

Entries for Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: Cash balance according to the company's records at July 31, $32,110. Cash balance according to the bank statement at July 31, $31,350. Checks outstanding, $2,870. Deposit in transit, not recorded by bank, $4,150. A check for $170 in payment of an account was erroneously recorded in the check register as $710. Bank debit memo for service charges, $20. Journalize the entries that should be made by the company, part (A) Error and part (B) Service Charge

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  1. 28 May, 20:44
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    The journal entries are as follows

    a. Cash $540

    To Account payable $540

    (Being the error is recorded)

    It is computed below:

    = Corrected amount - incorrect amount

    = $710 - $170

    = $540

    b. Bank service charges $20

    To Cash $20

    (Being the bank services charges are paid in cash is recorded)

    All other information is ignored
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