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Question - B.M Company Operations cash account has a month end balance of $128,002. Outstanding checks as of month end totaled $3,050. Deposits in transit totaled $100 at month end. The company incorrectly recorded a payment on their books for $125 that correctly cleared the bank for $152. The amount was originally posted to miscellaneous expense. The bank statement also shows a service charge of $100 on the account. The balance per the bank statement is $130,825.
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