Using Bank Reconciliation to Determine Cash Receipts StolenAlaska Impressions Co. records all cash receipts on the basis of its cash register tapes. Alaska Impressions Co. discovered during October that one of its salesclerks had stolen an undetermined amount of cash receipts while taking the daily deposits to the bank. The following data have been gathered for October:Cash in bank according to the general ledger$6,995Cash according to the October 31 bank statement16,160Outstanding checks as of October 314,615Bank service charge for October20Note receivable, including interest collected by bank in October7,485No deposits were in transit on October 31.a. Determine the amount of cash receipts stolen by the salesclerk.$fill in the blank 1b. What accounting controls would have prevented or detected this theft?

Bank Reconciliation Statement: Bank statement is prepared by bank. The company maintains its own…

Answered: Using Bank Reconciliation to Determine…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter5: Internal Control And Cash

Section: Chapter Questions

Problem 5.5.3C

See similar textbooks

Related questions

Question

Using Bank Reconciliation to Determine Cash Receipts Stolen

Alaska Impressions Co. records all cash receipts on the basis of its cash register tapes. Alaska Impressions Co. discovered during October that one of its salesclerks had stolen an undetermined amount of cash receipts while taking the daily deposits to the bank. The following data have been gathered for October:

Cash in bank according to the general ledger	$6,995
Cash according to the October 31 bank statement	16,160
Outstanding checks as of October 31	4,615
Bank service charge for October	20
Note receivable, including interest collected by bank in October	7,485

No deposits were in transit on October 31.

a. Determine the amount of cash receipts stolen by the salesclerk.
$fill in the blank 1

b. What accounting controls would have prevented or detected this theft?

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions