Which of the following items on a bank reconciliation would require an adjusting journal entry on the company's books?
A)An error by the bank.
B)Outstanding cheques.
C)A bank service charge.
D)A deposit in transit.

Question

Quizplus · Accepted Answer

A bank service charge is an expense that the company may not have recorded in its books until it receives the bank statement. Therefore, it requires an adjusting journal entry to reflect this expense in the company's accounting records.

Which of the Following Items on a Bank Reconciliation Would