p2 Acct 201 test 2 - The collection of accounts receivable...

The collection of accounts receivable seems to be slightly improving. It took the company slightly over
one-half day less to collect on its accounts receivable in 2013 than in 2012.
Items
Bank or Book
Addition or
Subtraction
Adjusting entry required
a. Interest on cash balance Book Addition Yes
b. Bank service charges Book Subtraction Yes
c. Debit memos Book Subtraction Yes
d. Outstanding checks Bank Subtraction No
e. Credit memos Book Addition Yes
f. NSF checks Book Subtraction Yes
g Outstanding deposits Bank Addition No
Bank Balance Book Balance Shown/Not Shown on Reconciliation
1.
NSF check from customer returned on Sept. 25 but
not recorded by this company.
NA Deduct - Cr. Shown
2.
Interest earned on the September cash balance in
the bank.
NA Add - Dr. Shown
3.
Deposit made on September 5 and processed by
bank on September 6.
NA NA Not Shown
4.
Check written by another depositor but charged
against this company's account.
Add NA Shown
5. Bank service charge. NA Deduct - Cr. Shown
6.
Checks outstanding on August 31 that cleared the
bank in September.
NA NA Not Shown
7.
Check written against the company account and
cleared by the bank; erroneously not recorded by the
company recordkeeper.
NA Deduct - Cr. Shown
8.
Principal and interest on a note receivable to this
company is collected by the bank but not yet
recorded by the company.
NA Add - Dr. Shown
9. Checks written and mailed to payees on October 2. NA NA Not Shown
10.
Checks written by the company and mailed to
payees on September 30.
Deduct NA Shown
11.
Deposit made on September 30 after the bank
closed.
Add NA Shown
12.
Special bank charge for collection of note in part 8
on this company’s behalf.
NA Deduct - Cr. Shown
Description
Document

A.
An itemized statement of goods prepared by the vendor listing the
customer's name, items sold, sales prices, and terms of sale.
Invoice
B.
An internal file used to store documents and information to control cash
disbursements and to ensure that a transaction is properly authorized and
recorded.
Voucher
C.
A document used to place an order with a vendor that authorizes the
vendor to ship ordered merchandise at the stated price and terms.
Purchase order
D.
A checklist of steps necessary for the approval of an invoice for recording
and payment; also known as a check authorization.