The following information pertains to Cullumber Company. 1. Cash balance per bank, July 31, $11,310.
2. July bank service charge not recorded by the depositor $65.
3. Cash balance per books, July 31, $11,440.
4. Deposits in transit, July 31, $4,615.
5. $2,600 collected for Cullumber Company in July by the bank through electronic funds transfer. The accounts receivable collection has not been recorded by Cullumber Company.
6. Outstanding checks, July 31, $1,950.

Required:
Journalize the adjusting entries at July 31 on the books of Cullumber Company.

Dr Bank charge  $65

Cr Cash/Bank account  $65

Being entries to recognize bank charge for the month

Dr Cash/Bank Account  $2,600

Cr Accounts receivable  $2,600

Being entries to recognize settlement of receivable due from Cullumber Company

Explanation:

Considering the transactions

2. July bank service charge not recorded by the depositor $65. - this will be recognized as a debit to bank charges account and a credit to the cash/bank account

4. Deposits in transit, July 31, $4,615. - This would have been recognized in the books but may not have been recorded by the bank hence no entries are required in the books.  

5. $2,600 collected for Cullumber Company in July by the bank through electronic funds transfer. The accounts receivable collection has not been recorded by Cullumber Company. - This will be recognized as a debit to cash/bank account and a credit to receivables

6. Outstanding checks, July 31, $1,950. - This would have been recognized in the books but may not have been recorded by the bank hence no entries are required in the books.

The answer may possibly be line-and-staff organization.