Accompanying the bank statement was a credit memorandum for a short-term note collected by the bank for the depositor.This item would be included on the bank reconciliation as a(n):
A) deduction from the cash balance per books.
B) addition to the cash balance per bank.
C) deduction from the cash balance per bank.
D) addition to the cash balance per books.

Question

Quizplus · Accepted Answer

A credit memorandum for a short-term note collected by the bank for the depositor increases the depositor's account balance. Therefore, it should be added to the cash balance per books during reconciliation to reflect the increased funds available to the depositor.

Accompanying the Bank Statement Was a Credit Memorandum for a Short-Term