A. What is a bank reconciliation and why is it important for companies to do it periodically?
B. Prepare a Bank Reconciliation Statement for XYZ company that has:
Bank statement of $10,000.
Cash account of $8,500.
Additional information for the reconciliation:
Deposit in transit.
NSF Check.
Outstanding check.
Collections made by the bank.
Bank error
Books error
Required: provide an amount of each information to bring the adjusted balances to be equal.
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