The journal entry to adjust the records from Nothin' But Organization bank reconciliation would include:
A) the total of outstanding checks.
B) deposits in transit.
C) notification from the bank of a customer's NSF check.
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 involves recording transactions that affect the company's cash balance but have not yet been recorded in the company's books. This includes NSF (Non-Sufficient Funds) checks, which are checks that have been returned by the bank because the issuer's account does not have enough funds. This requires an adjustment to reduce the company's cash account and accounts receivable or another relevant account. Options A, B, and D involve reconciling items that typically do not require adjustments in the company's books as they are timing differences or errors on the bank's part.

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