Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the company. This item is a (n)
A) deduction from the balance per company's records
B) addition to the balance per bank statement
C) deduction from the balance per bank statement
D) addition to the balance per company's records

Question

Quizplus · Accepted Answer

A credit memo for a short-term note collected by the bank for the company increases the company's account balance, thus it is an addition to the balance per company's records.

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