For Each of the Items Below, Use the Following Letters $\mathrm{A}=$

question 103

Essay

For each of the items below, use the following letters to identify the correct treatment in a bank reconciliation.
$\mathrm{A}=$ Add to balance per bank $\quad\quad\quad\quad \mathrm{C}=$ Add to balance per books
$\mathrm{B}=$ Deduct from balance per bank $\quad\quad \mathrm{D}=$ Deduct from balance per books ____ 1. Interest income
____ 2. Outstanding checks
____ 3. Check written for $89, but $98 recorded in books
____ 4. Customer's NSF check
____ 5. Note receivable collected by bank
____ 6. Deposit made for $70, but $700 recorded in books
____ 7. Bank check-printing charge
____ 8. Check written for $52, but $25 recorded in books
____ 9. Deposits in transit
____ 10. Bank fee for collection on note receivable

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Definitions:

Ending Inventory

The aggregate value of products on hand for selling when an accounting cycle concludes.

Gross Profit

The difference between revenues and the cost of goods sold before deduction of operating expenses, interest, and taxes.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus the cost of goods sold.

FIFO

"First In, First Out," an inventory valuation method where goods first added to inventory are the first ones sold.