Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 2. bank reconciliation (exhibit 2): the account re

2. Bank Reconciliation (Exhibit 2): The account receivable collected by the bank was paid by...

50.1K

Verified Solution

Question

Accounting

2. Bank Reconciliation (Exhibit 2): The account receivable collected by the bank was paid by a client directly to the bank on December 29, year5. Keystone recorded the entry for the proper amount on January 2, year 6.
No adjusting entry is needed as of 12/31/year 5.(Callout #2)
Choose an option below to repalce Callout #2.
a.[Original text (Keep as is)] No adjusting entry is needed as of 12/31/year 5.
b.[Delete entire point 2]
c. We should propose an adjusting entry as of 12/31/year 5 debiting cash and crediting accounts receivable for $6,000.
d. We should propose an adjusting entry as of 12/31/year 5 debiting cash and crediting miscellaneous revenues as net income is understated as of 12/31/year 5.
e. We should increase our assessed level of fraud risk due to this situation and propose no adjusting entry as of 12/31/year 5.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students