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The following data was extracted from the accounting records of Wise Company:

Adjusting journal entries made by Wise after preparing the December bank reconciliation were as follows:

Dr.	Cash	1,995.00
Dr.	Bank Service Charges	5.00
Cr.	Notes Receivable		2,000.00

Dr.	Cash	27.00
Cr.	Advertising Expense		27.00

Dr.	Accounts Receivable	450.00
Cr.	Cash		450.00

Dr.	Bank Service Charges Expense	42.50
Cr.	Cash		42.50

Other information:

• The Balance Per books November 30 was $18,434.27
• Deposits in transit at December 31 were $2,145.40
• An error made by the bank on the December bank statement was detected. It had charged a cheque written by another bank client (Wiese Company) against Wise

Company's bank balance. The Bank has been notified and agrees it is indeed their error. The amount was $30.50

• Outstanding cheques were $1,938.53
• There were no other reconciling items not reflected above

The journal entry for the $450 probably represents:

Multiple Choice

• An NSF cheque
• A deposit made by Wise which was not recorded on the bank statement
• Some other explanation
• An outstanding cheque written by Wise which has not cleared the bank in December
• Collection of a receivable on Wise's behalf

Question 5 of 10 Total 5 of 10

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