Which of the following bank reconciliation items would NOT be reflected in a journal entry?
A) Bank service charges
B) Collection of a note by the bank
C) Outstanding cheques
D) NSF customer cheque

Question

Quizplus · Accepted Answer

Outstanding cheques are cheques that have been written by the company but have not yet been cleared by the bank. They do not require a journal entry in the company's books because they have already been recorded when the cheques were issued. The other options (bank service charges, collection of a note by the bank, and NSF customer cheque) all require adjustments in the company's accounting records and thus would be reflected in a journal entry.

Which of the Following Bank Reconciliation Items Would NOT Be