A nonsufficient funds check was returned to your company.How does the bank treat this on your bank statement?
A)It is added to the bank balance.
B)It is shown as a debit memo.
C)It is shown as a credit memo.
D)None of these answers are correct.

Question

Quizplus · Accepted Answer

When a nonsufficient funds check is returned, the bank will show it as a debit memo on the company's bank statement. This is because the bank is deducting the amount of the check from the company's account due to insufficient funds to cover the check.

A Nonsufficient Funds Check Was Returned to Your Company