Which of the following bank reconciliation items would not result in an adjusting journal entry in the company's books?
A)Service charge.
B)Outstanding cheques.
C)A customer's cheque returned NSF.
D)Interest earned on deposits.

Question

Quizplus · Accepted Answer

Outstanding cheques are checks that have been written by the company and deducted from the company's cash account, but have not yet been cleared by the bank. They do not require an adjusting journal entry in the company's books because they have already been recorded in the company's cash account when the checks were issued.

Which of the Following Bank Reconciliation Items Would Not Result