A bank may issue a credit memorandum for
A) a bank service charge.
B) an NSF (not sufficient funds) check from a customer.
C) the collection of a note receivable for the depositor by the bank.
D) the cost of printing checks.

Question

Quizplus · Accepted Answer

A credit memorandum is issued when the bank collects a note receivable for the depositor. This occurs when the bank has collected funds on behalf of a depositor and is crediting the depositor's account for the amount collected. Options A, B, and D are incorrect as they would result in a debit memorandum (an amount deducted from the account balance) rather than a credit memorandum (an amount added to the account balance).

A Bank May Issue a Credit Memorandum for