All of the following bank reconciliation items would result in an adjusting entry on the company's books except
A) interest earned.
B) deposits in transit.
C) fee for collection of note by bank.
D) NSF check of customer.

Question

Quizplus · Accepted Answer

Deposits in transit are already recorded in the company's books and do not require an adjusting entry; they are timing differences that will clear in the next period.

All of the Following Bank Reconciliation Items Would Result in an Adjusting