Jerry's Garage Accepted $700 in Counterfeit Bills for a Repair

question 49

Short Answer

Jerry's Garage accepted $700 in counterfeit bills for a repair job. The company's insurance policy covers losses from counterfeit money up to $1,000 with a $250 deductible. What is the out-of-pocket loss experienced by Jerry's Garage?

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Definitions:

NSF Check

A check that has been returned by a bank because it cannot be cashed due to insufficient funds in the account it was drawn against.

Cash Account

A financial account where cash transactions are recorded, showing the cash inflows and outflows for a person or business.

Bank Reconciliation

The method of aligning the balance in a company's financial records for a cash account with the relevant details on a bank statement.