Which of the following is an example of a credit memorandum?
A)Service charge
B)Collection of a note receivable by the bank
C)Outstanding check
D)Company error in recording a $600 deposit as $500

Question

Quizplus · Accepted Answer

A credit memorandum is issued by a bank when it increases a depositor's account for a specific transaction. Collection of a note receivable by the bank on behalf of the customer is an example of such a transaction, where the bank collects the amount due on a note receivable and credits the customer's account for the amount collected.

Which of the Following Is an Example of a Credit