In preparing a bank reconciliation, the amount indicated by a debit memo for bank service charges is added to the balance per company's records.

Question

Quizplus · Accepted Answer

In preparing a bank reconciliation, the amount indicated by a debit memo for bank service charges is subtracted from the balance per company's records, not added, to adjust for expenses the bank has charged to the account.

In Preparing a Bank Reconciliation, the Amount Indicated by a Debit