Z-Mart made a bank deposit on September 30 that did not appear on September's bank statement. In preparing September's bank reconciliation, the company should:
A)Deduct the deposit from the bank statement balance.
B)Deduct the deposit from September's book balance and add it to October's book balance.
C)Send the bank a debit memorandum.
D)Add the deposit to the book balance of cash.
E)Add the deposit to the bank statement balance.

Question

Quizplus · Accepted Answer

The deposit is an outstanding deposit that has not yet been recorded by the bank, so it should be added to the bank statement balance to reconcile the bank statement with the company's records.

Z-Mart Made a Bank Deposit on September 30 That Did