If a bank reconciliation included deposits in transit amounting to $1,500, the journal entry to record this reconciling item would include:

Question

Quizplus · Accepted Answer

Deposits in transit are amounts that have been received and recorded by the business but not yet recorded by the bank. No journal entry is required for deposits in transit during bank reconciliation because they are already recorded in the company's cash account.

If a Bank Reconciliation Included Deposits in Transit Amounting to $1,500