On October 31, 2015, Damon CompanyAc??cs
general ledger shows a checking account balance of $8,445. The
companyAc??cs cash receipts for the month total $74,640, of which
$71,375 has been deposited in the bank. In addition, the company
has written checks for $72,515, of which $71,270 has been processed
by the bank.
The bank statement reveals an ending balance of $12,895 and
includes the following items not yet recorded by Damon: bank
service fees of $310, note receivable collected by bank of $6,600,
and interest earned on the account balance plus from the note of
$1,120. After closer inspection, Damon realizes that the bank
incorrectly charged the companyAc??cs account $940 for an automatic
withdrawal that should have been charged to another customerAc??cs
account. The bank agrees to the error.
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