To arrive at an accurate balance on a bank reconciliation statement, a debit memorandum for a customer check marked NSF should be:

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NSF stands for "non-sufficient funds" and means that the customer's check bounced because they did not have enough money in their account to cover it. Therefore, the bank did not credit the company's account with the amount of the check. As a result, the company's book balance (the amount it thought it had in the account) is actually higher than the bank statement balance (the amount the bank shows on its records). To account for this difference and arrive at an accurate balance, the NSF check should be deducted from the book balance.

To Arrive at an Accurate Balance on a Bank Reconciliation