A company had poor internal control over its cash transactions. Facts about its cash position at June 30, 2008, were as follows:
The cash account showed a balance of $37,804, which included undeposited receipts. A credit of $200 on the bank's records did not appear on the books of the company. The balance per the bank statement was $31,102. Outstanding cheques were: No. 62 for $232, No. 183 for $300, No. 284 for $506, No. 8621 for $382, No. 8623 for $414, and No. 8632 for $290.
The cashier removed all undeposited receipts in excess of $7,588 and prepared the following reconciliation: Prepare a supporting schedule showing how much the cashier removed. Also, explain how the cashier attempted to conceal the theft.
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