The journal entry to adjust the records from Nothin' But Organization bank reconciliation would include
A) the total of outstanding cheques.
B) deposits in transit.
C) notification from the bank of a customer's NSF cheque.
D) correction of any errors or omissions on the bank statement.

Question

Quizplus · Accepted Answer

The correct journal entry for adjusting records from a bank reconciliation that involves the company's accounts would include notification from the bank of a customer's NSF (Non-Sufficient Funds) cheque. This is because NSF cheques are cheques that were previously recorded as cash receipts but have been returned by the bank due to insufficient funds in the payer's account, thus requiring an adjustment to the company's books.

The Journal Entry to Adjust the Records from Nothin' but Organization