Question

30.6 Ordan received a statement from one of its suppliers, Alta, showing a balance due of $3,980. The amount due according to the payables ledger account of Alta in Ordan's records was only $230. Comparison of the statement and the ledger account revealed the following differences: 1 A cheque sent by Ordan for $270 has not been allowed for in Alta's statement. Alta has not allowed for goods returned by Ordan $180. 2 3 Ordan made a contra entry, reducing the amount due to Alta by $3,200, for a balance due from Alta in Ordan's receivables ledger. No such entry has been made in Alta's records. What is the remaining difference between the two companies' records after adjusting for these items?

Answer 1

After adjusting for an unaccounted cheque, goods returned, and a contra entry, the final balance due to Alta according to Ordan's records should be $330. Ordan's current balance shows only $230, leaving a remaining difference of $100.

Step-by-step explanation:

To reconcile the differences in the balance due according to Alta's statement and Ordan's records, we need to adjust for the noted discrepancies:

• An unaccounted cheque of $270.
• Goods returned totaling $180.
• A contra entry made by Ordan for $3,200.

Starting with Alta's balance of $3,980, we first subtract the cheque Ordan sent that Alta has not accounted for ($3,980 - $270 = $3,710). Next, we adjust for the goods returned by Ordan that have not been recorded by Alta ($3,710 - $180 = $3,530). Finally, we subtract the contra entry made by Ordan for the balance due from Alta ($3,530 - $3,200 = $330).

The corrected balance due to Alta according to Ordan's records after adjusting for these items would be $330. However, Ordan's records show a balance of only $230. So, the remaining difference is $330 - $230 = $100.