The National Bank collected $3,000 including $300 interest on behalf of Z Inc. from one of its debtors on May 29, 2017. No entry for this collection was made by Z Inc. till May 31, 2017.How will Z Inc. have adjusted the collection of $3,000 by National Bank on a bank reconciliation prepared on May 31, 2017?Add $2,700 to cash balance on May 31, 2017, as per bank statement.Add $3,000 to cash balance on May 31, 2017, as per bank statement.Add $3,000 to cash balance on May 31, 2017, as per books.Add $2,700 to cash balance on May 31, 2017, as per books.

In this scenario, the National Bank has collected $3,000 on behalf of Z Inc. from one of its…

Answered: The National Bank collected $3,000…

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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Part ii. Prepare the journal entries resulting from the bank reconciliation
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The National Bank collected $3,000 including $300 interest on behalf of Z Inc. from one of its debtors on May 29, 2017. No entry for this collection was made by Z Inc. till May 31, 2017. How will Z Inc. have adjusted the collection of $3,000 by National Bank on a bank reconciliation prepared on May 31, 2017?
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