Wright Company's cash account shows a $27,700 debit balance and its bank statement shows $26,000 on deposit at the close of busi
ness on May 31. The May 31 bank statement lists $110 in bank service charges; the company has not yet recorded the cost of these services. Outstanding checks as of May 31 total $5,700. May 31 cash receipts of $6,300 were placed in the bank’s night depository after banking hours and were not recorded on the May 31 bank statement. In reviewing the bank statement, a $410 check written by Smith Company was mistakenly drawn against Wright’s account. The bank statement shows a $580 NSF check from a customer; the company has not yet recorded this NSF check. Prepare its bank reconciliation using the above information.
JIT stands for just in time; it is a process which is used to handle and coordinate the inventory management. The main goal is to handle the inventory efficiently to improve the flow of the system in a timely manner and to eliminate discrepancies in the inventory management system. Overall, it helps to eliminate the disruption and to make the system flexible and smooth.
Out of five day workweek, accounting period ends on Thursday which indicates that employees work only for 4 days. Therefore, salaries are earned only for 4 working days and unpaid at the end of the accounting period
Salaries earned but unpaid= 4 working days * $850 per day = $3,400
Hence, salaries earned but unpaid at the end of the account period is $3,400
