In the reconciliation process the unrecorded bank service charge is:
A)Added to checkbook balance
B)Deducted from checkbook balance
C)Added to bank statement balance
D)Deducted from bank statement balance
E)None of these

Question

Quizplus · Accepted Answer

The unrecorded bank service charge is a deduction from the checkbook balance. This is because the bank has already deducted the service charge from the account, but it has not yet been recorded in the checkbook. Therefore, to reconcile the two balances, the service charge must be deducted from the checkbook balance.

In the Reconciliation Process the Unrecorded Bank Service Charge Is