What adjustment is required in the depositor's accounts to record outstanding checks?
A) None
B) Increase Cash; decrease Accounts Receivable
C) Increase Cash; increase Accounts Payable
D) Increase Accounts Receivable; decrease Cash

Question

Quizplus · Accepted Answer

Outstanding checks have already been deducted from the depositor's account balance by the depositor but not yet by the bank. Therefore, no adjustment is needed in the depositor's accounts for outstanding checks.

What Adjustment Is Required in the Depositor's Accounts to Record