If a bank reconciliation included deposits in transit amounting to $3,700, the journal entry to record this reconciling item:
A)should debit Deposit in Transit and credit Cash for $3,700.
B)should debit Cash and credit Deposit in Transit for $3,700.
C)should debit Accounts Receivable and credit Cash for $3,700.
D)is not required.

Question

Quizplus · Accepted Answer

Deposits in transit are already recorded in the company's books but not yet reflected in the bank statement, so no journal entry is needed.

If a Bank Reconciliation Included Deposits in Transit Amounting to $3,700