Pat Posts a Set of Rules for the Class and the Consequences

question 9

Short Answer

Pat posts a set of rules for the class and the consequences for not following them.  What strategy is Pat using?

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Definitions:

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.

Deposits in Transit

Funds that have been received and recorded by a business but not yet processed or acknowledged by the bank.

Allowance Method

An accounting technique used to estimate and account for bad debts where the company anticipates a certain percentage of accounts receivable will be uncollectible.