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Linville Company Gathered the Following Reconciling Information in Preparing Its

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Linville Company gathered the following reconciling information in preparing its April bank reconciliation:  Cash balance per books, 4/30$17,600 Deposits in transit 2,400 Notes receivable (face, $5,000 )  and interest collected by bank 5,920 Bank charge for check printing 30 Outstanding checks 12,000 NSF check 1,120\begin{array}{lr}\text { Cash balance per books, } 4 / 30 & \$ 17,600 \\\text { Deposits in transit } & 2,400 \\\text { Notes receivable (face, } \$ 5,000 \text { ) and interest collected by bank } & 5,920 \\\text { Bank charge for check printing } & 30 \\\text { Outstanding checks } & 12,000 \\\text { NSF check } & 1,120\end{array} Use the following tabular analysis to determine the required adjustment for the notes receivable to Linville's accounts assuming that no interest has been accrued:  Linville Company gathered the following reconciling information in preparing its April bank reconciliation:  \begin{array}{lr} \text { Cash balance per books, } 4 / 30 & \$ 17,600 \\ \text { Deposits in transit } & 2,400 \\ \text { Notes receivable (face, } \$ 5,000 \text { )  and interest collected by bank } & 5,920 \\ \text { Bank charge for check printing } & 30 \\ \text { Outstanding checks } & 12,000 \\ \text { NSF check } & 1,120 \end{array}  Use the following tabular analysis to determine the required adjustment for the notes receivable to Linville's accounts assuming that no interest has been accrued:   A) Increase Cash $5920 decrease Notes Receivable $5920. B) Decrease Cash $5920 increase Interest Expense $920 decrease Notes Payable $5000. C) Increase Cash $5920 increase Interest Revenue $920 decrease Notes Receivable $5000. D) No adjustment is needed because the bank collected the note.


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