The bank would issue a credit memorandum to Maria's Life Management when the bank:
A)received the deposits in transit.
B)collects a note receivable from a customer.
C)discovered a check that was deposited was returned for nonsufficient funds.
D)None of these answers are correct.

Question

Quizplus · Accepted Answer

A credit memorandum is issued by a bank when it increases a customer's account balance for specific transactions. Collecting a note receivable on behalf of a customer is one such transaction where the bank would credit the customer's account, hence issuing a credit memorandum.

The Bank Would Issue a Credit Memorandum to Maria's Life