A debit memo appeared on the May bank statement. How should this amount be treated on the May bank reconciliation?
A)Add it to the company's balance.
B)Add it to the bank balance.
C)Deduct it from the company's balance.
D)Deduct it from the bank balance.

Question

Quizplus · Accepted Answer

A debit memo on a bank statement indicates a deduction made by the bank from the company's account. Therefore, it should be deducted from the company's balance during the bank reconciliation process.

A Debit Memo Appeared on the May Bank Statement