Which of the following bank reconciliation items would be reflected in a journal entry?
A) Error made by the bank
B) Outstanding checks
C) Bank service charges
D) Deposit in transit

Question

Quizplus · Accepted Answer

Bank service charges are reflected in a journal entry to adjust the company's cash account because these charges decrease the company's cash balance. Errors made by the bank, outstanding checks, and deposits in transit are reconciling items that do not require a journal entry by the company, as they are adjustments made on the bank reconciliation statement to reconcile the bank's cash balance with the company's cash records.

Which of the Following Bank Reconciliation Items Would Be Reflected