Wright Company's cash account shows a $30,300 debit balance and its bank statement shows $28,600 on deposit at the close of business on May 31. The May 31 bank statement lists $240 in bank service charges; the company has not yet recorded the cost of these services. Outstanding checks as of May 31 total $7,000. May 31 cash receipts of $7,600 were placed in the bank’s night depository after banking hours and were not recorded on the May 31 bank statement. In reviewing the bank statement, a $540 check written by Smith Company was mistakenly drawn against Wright’s account. The bank statement shows a $320 NSF check from a customer; the company has not yet recorded this NSF check. Prepare its bank reconciliation using the above information.

Balance at Bank                             $28,600

Less Unrepresented Checks

Outstanding checks                       ($7,000)

Add Uncleared Lodgement

Cash receipts                                   $7,600

Error - check written                         $1,180

Balance                                           $30,380

Adjusted Cash Book

Debits :

Balance before adjustments        $30,300

NSF check                                          $320

Credits :

Bank service charges                        $240

Balance c/d                                   $30,380

Explanation:

The Cash Book sometimes fails to agree with the Bank Statement due to Timing Difference, Unrecorded Items and Errors in Cash Book or Bank Statement and these must be adjusted appropriately in the Cash Book and the Bank (Bank Statement)

24 years, i believe is the correct answer.