At May 31, Robinson Company has outstanding checks totaling $9,800. The bank reconciliation for May should show these checks as a(n):
A) Deduction from balance per bank statement
B) Addition to balance per bank statement
C) Addition to balance per general ledger
D) Deduction from balance per general ledger
E) None of the above

Question

Quizplus · Accepted Answer

Outstanding checks are checks that have been written by the company but have not yet been cleared by the bank. Therefore, they are deducted from the balance per bank statement to reconcile the company's book balance with the bank's balance.

At May 31, Robinson Company Has Outstanding Checks Totaling $9,800