A company wrote a check on September 30 that did not appear on the bank statement dated September 30.In preparing the September 30 bank reconciliation,the company should:
A)Deduct the check from the bank statement balance.
B)Send the bank a credit memorandum.
C)Deduct the check from the September 30 book balance and add it to the October 1 book balance.
D)Add the check to the book balance of cash.
E)Add the check to the bank statement balance.

Question

Quizplus · Accepted Answer

The check is an outstanding check, which means it has been written and recorded in the company's books but has not yet cleared the bank. Therefore, it should be deducted from the bank statement balance in the bank reconciliation.

A Company Wrote a Check on September 30 That Did