A debit or credit memo describing entries in the company's bank account may be enclosed with the bank statement. An example of a credit memo is
A) deposited checks returned for insufficient funds
B) collection of a promissory note
C) a service charge
D) notification that a customer's check for $375 was recorded by the company as $735 on the deposit ticket

Question

Quizplus · Accepted Answer

A credit memo represents an increase in the company's bank balance, such as the collection of a promissory note. A, C, and D are examples of debit memos, representing decreases in the company's bank balance.

A Debit or Credit Memo Describing Entries in the Company's