How to detect the error in bank reconciliation


Response to the following problem:

During the preparation of the bank reconciliation for The Image Co., Chris Renees, the assistant controller, discovered that Empire National Bank incorrectly recorded a $936 check written by The Image Co. as $396. Chris has decided not to notify the bank but wait for the bank to detect the error. Chris plans to record the $540 error as Other Income if the bank fails to detect the error within the next three months. Discuss whether Chris is behaving in a professional manner.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: How to detect the error in bank reconciliation
Reference No:- TGS02131461

Now Priced at $20 (50% Discount)

Recommended (99%)

Rated (4.3/5)