How would customer's NSF checks be dealt with in a bank reconciliation?
A) added to company's book balance
B) deducted from company's book balance
C) added to bank statement balance
D) deducted from bank statement balance

Question

Quizplus · Accepted Answer

NSF (Non-Sufficient Funds) checks represent bounced checks from customers, meaning that their checks could not be processed and paid by the bank due to insufficient funds in the customer's account. Therefore, the company should deduct these checks from its book balance since the company will not receive the amount indicated on the check.

How Would Customer's NSF Checks Be Dealt with in a Bank