If a check received from a customer has been deposited by the seller and is marked on the bank statement as a nonsufficient funds (NSF)amount,then it would appear on the seller's bank reconciliation as a deduction from the ending bank statement balance.

Question

Quizplus · Accepted Answer

NSF checks are added back to the book balance, not deducted from the bank statement balance, because they represent funds the bank initially credited but then removed due to insufficient funds in the payer's account.

If a Check Received from a Customer Has Been Deposited