A credit memo appeared on the September bank statement. How should this amount be treated on the September 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 credit memo from the bank indicates an increase in the company's bank account, thus it should be added to the company's balance in the reconciliation process to reflect the actual available funds.

A Credit Memo Appeared on the September Bank Statement