Using the Following Information,list the Items That Will Require Adjustments

question 7

Essay

Using the following information,list the items that will require adjustments to the accounts of Salem Co.Also,indicate which accounts will increase or decrease due to the adjustment.

(a) The bank statement balance is $2,597.
(b) The cash account balance is $2,680.
(c) Outstanding checks amounted to $703.
(d) Deposits in transit are $732.
(e) The bank service charge is $25.
(f) Interest added to the checking account by the bank is $7.
(g) A check drawn for $59 was incorrectly charged by the bank as $95.

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Definitions:

List Price Deductions

Discounts, allowances, or reductions from a product's standard list price that sellers may offer to buyers.

Performing Activity

The act of carrying out tasks or duties that contribute to the achievement of specific objectives.

Geographical Adjustments

modifications made to policies, wages, or prices to reflect the cost of living or market conditions in different locations.

Warehouse Inventory

The stock of goods and materials held by a company in a warehouse for processing or distribution.