(Solution) - The cash data of Navajo Products for September 2014 follow On -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Pages: 5 Words: 1375

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The cash data of Navajo Products for September 2014 follow:

On September 30, 2014, Navajo received this bank statement:

Explanation: BC-bank collection, EFT-electronic funds transfer, NSF-nonsufficient funds cheque, SC-service charge
Additional data for the bank reconciliation:
a. The EFT deposit was for monthly rent revenue. The EFT deduction was for monthly insurance expense.
b. The bank collection was of a note receivable.
c. The NSF cheque was received from a customer.
d. The correct amount of cheque number 1419, a payment on account, is $4,216. (The Navajo accountant mistakenly recorded the cheque for $4,126.)
Requirements
1. Prepare the bank reconciliation of Navajo Products at September 30, 2014.
2. Describe how a bank account and the bank reconciliation help managers control a firm's cash.