Delton Company Developed the Following Reconciling Information in Preparing Its

question 37

Multiple Choice

Delton Company developed the following reconciling information in preparing its September bank reconciliation: $\begin{array}{lr}\text { Cash balance per bank, 9/30 } & \$ 6,610 \\\text { Note receivable collected by bank } & 3,630 \\\text { Outstanding checks } & 2,300 \\\text { Deposits in transit } & 2,520 \\\text { Bank service charge } & 24 \\\text { NSF check } & 627\end{array}$ Using the above information determine the cash balance per books (before adjustments) for the Delton Company.

• A) $3851
• B) $6830
• C) $9809
• D) $9369

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Definitions:

Collection Policy

Collection Policy outlines the procedures a company follows to collect accounts receivable or outstanding invoices.

Tighter Collection

Refers to the implementation of more stringent policies or practices to accelerate the collection of receivables.

Collection Policy

Guidelines and procedures set by a company to manage and collect accounts receivable, or the money owed by customers.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available to run its operations.