Using bank reconciliation to determine cash receipts stolen
Alaska Impressions Co records all cash receipts on the basis of its cash register tapes. Alaska Impressions discovered during October that one of its sales clerks had stolen an undetermined amount of cash receipts by taking the daily deposits to the bank. The following data have been gathered for October:
Cash in bank according to the general ledger
$
Cash according to the October Y bank statement
Outstanding checks as of October
Bank service charge for October
Note receivable, including interest collected by bank in October
No deposits were in transit on October
a Determine the amount of cash receipts stolen by the sales clerk.
$
b What accounting controls would have prevented or detected this theft?
