While Reconciling Snyder Company's Bank Statement an Error Was Discovered

question 181

Short Answer

While reconciling Snyder Company's bank statement an error was discovered. A $905 cash receipt for the collection of an account receivable was recorded in the company's books as $950. The deposit slip was correct; the error appeared only in the company's accounting records.

---

Definitions:

Stamp Act Congress

A meeting of delegates from several American colonies in 1765, formed to protest the British Stamp Act and organize resistance.

Declaratory Act

A law passed by the British Parliament in 1766 stating that the British government had the same power to tax and make laws for the American colonies "in all cases whatsoever" as it did in Britain.

Stamp Act

Parliament’s 1765 requirement that revenue stamps be affixed to all colonial printed matter, documents, and playing cards; the Stamp Act Congress met to formulate a response, and the act was repealed the following year.