While preparing the bank reconciliation, you notice that a check, written by the company for $750, has been outstanding for 5 months.What is the best action for you to take?
A)Void the check.If it has not been cashed in 5 months, it will never be cashed.
B)Issue a replacement check because you assume the original check has been lost.
C)Wait 3 more months to give the bank more time to clear the check.
D)Investigate to determine why the check has not cleared.

Question

Quizplus · Accepted Answer

Investigating why the check has not cleared is the best action, as it allows you to determine if there is an issue with the check or if it has been lost, before taking further steps like voiding or replacing it.

While Preparing the Bank Reconciliation, You Notice That a Check