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The following information regarding cash for Alpha Company is provided for the month ending March 31, 2016:
|
Item |
Amount |
|
Ending Cash per Bank Statement |
$1,500 |
|
Ending Cash per Company Books |
$1,705 |
|
Bank Service Charges |
$15 |
|
Deposits in Transit |
$325 |
|
Outstanding Cheques |
$230 |
|
Customer Cheque returned NSF |
$95 |
In the text it shows an example where they needed to raise the company ending balance to be the same as the correct cash balance. So in their journal entry I see that they debit cash. For this problem, it seems to me that we needed to lower the company ending balance to be at the correct cash balance. So I debit Accounts Receivable and Miscellaneous and credit Cash. My question is if we need to lower a company ending balance to be the same as the correct cash balance do we credit cash?
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