Accompanying the bank statement was a debit memo for an NSF check received from a customer. This item would be included on the bank reconciliation as 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

An NSF (Non-Sufficient Funds) check received from a customer that is returned by the bank and noted on the bank statement would require the company to adjust its own records to reflect the fact that the funds it thought it had received were not actually available. This adjustment is made by deducting the amount of the NSF check from the balance per the company's records.

Accompanying the Bank Statement Was a Debit Memo for an NSF