Marcella Industries received a credit memorandum from the bank. During the bank reconciliation they should
A) increase their cash account on the company's books.
B) decrease their cash account on the company's books.
C) increase the ending cash balance on the bank statement.
D) decrease the ending cash balance on the bank statement.

Question

Quizplus · Accepted Answer

A credit memorandum from the bank means that the bank has increased the company's account balance. Therefore, the company's cash account on their books should also be increased to reflect this increase in funds.

Marcella Industries Received a Credit Memorandum from the Bank