Alaska Impressions Co. records all cash receipts on the basis of its cash register tapes. Alaska Impressions discovered during October 20Y3 that one of its sales clerks had stolen an undetermined amount of cash receipts by taking the daily deposits to the bank. The following data have been gathered for October:Cash in bank according to the general ledger$12,620Cash according to the October 31, 20Y3, bank statement12,990Outstanding checks as of October 31, 20Y33,340Bank service charge for October35Note receivable, including interest collected by bank in October2,260 No deposits were in transit on October 31.A.Determine the amount of cash receipts stolen by the sales clerk.B.What accounting controls would have prevented or detected this theft? Cash receipts stolen A. Determine the amount of cash receipts stolen by the sales clerk. Final question B. What accounting controls would have prevented or detected this theft?The theft of the cash receipts might have been prevented by having make the daily deposit.

(A) In the given case first of all we have to prepare a draft bank reconciliation statement to check…

Answered: October 20

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Alaska Impressions Co. records all cash receipts on the basis of its cash register tapes. Alaska Impressions discovered during October 20Y3 that one of its sales clerks had stolen an undetermined amount of cash receipts by taking the daily deposits to the bank. The following data have been gathered for October:

Cash in bank according to the general ledger	$12,620
Cash according to the October 31, 20Y3, bank statement	12,990
Outstanding checks as of October 31, 20Y3	3,340
Bank service charge for October	35
Note receivable, including interest collected by bank in October	2,260

No deposits were in transit on October 31.

A.	Determine the amount of cash receipts stolen by the sales clerk.
B.	What accounting controls would have prevented or detected this theft?

Cash receipts stolen

A. Determine the amount of cash receipts stolen by the sales clerk.

Final question

B. What accounting controls would have prevented or detected this theft?

The theft of the cash receipts might have been prevented by having make the daily deposit.

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