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user100 [1]
3 years ago
5

The price co.'s books showed a cash balance of 3,420.00 at the end of September. A comparison of the September 30 bank statement

to the company's check register revealed the following
Business
1 answer:
SVEN [57.7K]3 years ago
4 0
If these are the missing details:
<span>checks in the amount of $516.88 were still outstanding,
a deposit for $453.13 had not been credited,
monthly service charges were $16.00,
and a check in the amount of $104.65 had been returned NSF.
What was the reconciled cash balance of Price Co.?
</span>
Ending book balance:  $ 3,420.00
Add back: O/S check:       516.88     This has not yet been encashed or deposited by bearer
Deduct: deposit               (453.13)   This has not yet been credited in the bank
Deduct: monthly svc         (16.00)   Deducted by the bank not in the books
Deduct: check deposit <u>   (104.65) </u>  NSF recorded by the bank. This is still collectible from maker
Reconciled cash bal.    3,363.10

NSF stands for no sufficient funds. If the company receives the check and deposits it to their account, it will be recorded as collected and earned. So the cash balance will be increased by 104.65. However, because the check is NSF, it means that the check is not good and the receivable has not been paid. Thus, the company has to deduct the amount from their books and collect from the customer the amount they deduct. 

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<h3>Question Completion with Answer Options:</h3>

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