Scotch Services received a credit memorandum from the bank. During the bank reconciliation they should:
A) increase their cash account on the company's books.
B) decrease their cash account on the company's books.
C) increase the ending cash balance on the bank statement.
D) decrease the ending cash balance on the bank statement.

Question

Quizplus · Accepted Answer

A credit memorandum from the bank indicates that the bank has increased the company's account balance, so the company should increase its cash account to reflect this.

Scotch Services Received a Credit Memorandum from the Bank