All of the following bank reconciliation items would require an adjusting entry on the depositor's books except A)interest earned. B)deposits in transit. C)a bank service charge. D)a customer's NSF cheque.

Question

Quizplus · Accepted Answer

Deposits in transit are amounts that have been received and recorded by the business but not yet recorded by the bank. They do not require an adjusting entry on the depositor's books because they have already been accounted for; instead, they are adjustments on the bank reconciliation to reconcile the bank's balance to the book balance. Interest earned, bank service charges, and NSF (non-sufficient funds) cheques all require adjusting entries to reflect these items in the depositor's accounting records.

All of the Following Bank Reconciliation Items Would Require an Adjusting