Below, Preceded by Identifying Letters, Are Seven Items That Would $\$ 200$

question 89

Essay

Below, preceded by identifying letters, are seven items that would cause Xavier Sales Company's book balance of cash to differ from its bank statement balance.
(a) A customer's cheque returned by the bank marked "Not Sufficient Funds." A customer's cheque returned by the bank marked "Not Sufficient Funds."
(b) A cheque listed as outstanding on the previous month's reconciliation that is still outstarding:
(c) A service charge made by the bank.
(d) A deposit consisting solely of cheques which was mailed to the bank on the last day of Novernber and is unrecorded on the Novernber bank statement.
(e) A cheque paid by the bank at its correct $\$ 200$ amount but recorded in error in the Cheque Register at $\$ 20$ .
(f) An unrecorded credit memorandum indicating the bank had collected a note receivable for Xavier Sales Compary and deposited the proceeds in the compary's account.
(g) A cheque written but not yet paid or retuned by the bank Indicate where each item would appear on Xavier Sales Company's bank reconciliation by putting an "X" in the correct column below.

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Definitions:

Comparative Negligence

A principle of tort law that compares the negligence of the conflicting parties and apportions damages accordingly.

Res Ipsa Loquitur

A Latin term that means "the thing speaks for itself," used in tort law to refer to cases where the negligence is inferred from the nature of the accident.

Actual Cause

The true reason an event occurred, which directly led to the damage or injury, forming a basis for establishing legal liability.

Res Ipsa Loquitur

A legal doctrine that allows the presumption of negligence by proving that the type of accident would not occur without someone's negligence.