You are in the process of preparing a bank reconciliation for Carpenter Company as of May 31.Listed below is information necessary to prepare the reconciliation.
Required:
In the spaces provided, place the appropriate letter to indicate whether each item of information should be
a. deducted from the balance per bank statement
b. added to the balance per bank statement
c. deducted from the balance per company records
d. added to the balance per company records
e. omitted from the reconciliation
_____

\quad

\quad

Deposit in transit of

\$ 1,500

as of May 31 .
_____

\quad

\quad

April service charge of

\$ 30

recorded by the company in May.
_____

\quad

\quad

Checks totaling

\$ 1,100

written in April that have not cleared the bark by May 31 .
_____

\quad

\quad

Check of Tomi, Inc. for

\$ 780

deposited in May by Capenter Company and returned by the bank with the NSF

\quad

\quad

\quad

\quad

notation in May bank statement.
_____

\quad

\quad

Canceled check No. 205 written by Capenter Company for

\$ 200

to Mays, Inc., had be en recorded on the

\quad

\quad

\quad

\quad

company's books as

\$ 2,000

.
_____

\quad

\quad

Note receivable face value plus interest collected by the bank and deposited into Cappenter's account and not previously

\quad

\quad

\quad

\quad

recorded by Capenter Compary.
_____

\quad

\quad

Bank service charge of

\$ 35

for May.
_____

\quad

\quad

Check of Carpets, Inc. charged in error against Carpenter's account by the bank during May and not corrected as of May 31

The Method for Estimating Bad Debts That Results in Current

Multiple Choice

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