In preparing a bank reconciliation statement for a business with a substantial bank balance,the appropriate treatment for a customer's note receivable for $1500 plus $50 interest collected by bank and appearing on the bank statement is to:
A) add it to the balance as per bank statement.
B) deduct it from the balance as per bank statement.
C) add it to the balance per company records.
D) deduct it from the balance per company records.

Question

Quizplus · Accepted Answer

The customer's note receivable with $50 interest has been collected by the bank and appears on the bank statement. As the amount has been collected and deposited into the company's bank account, it should be added to the balance per company records to match with the bank balance. Therefore, the appropriate treatment is to add it to the balance per company records.

In Preparing a Bank Reconciliation Statement for a Business with a Substantial