Clayborn Company' bank reconciliation as of May 31 is shown below. $$\begin{array} { | l | r | r | r | }
\hline \text { Bank balance } & \$ 15,800 & \text { Book balance } & \$ 17,025 \
\hline \text { + Deposit in transit } & 5,200 & \text { Bank service fees } & - 25 \
\hline \text { - Outstanding checks } & \underline { 4,600 } & \text { NSF returned } & \underline { - 600 } \
\hline \text { Adjusted bank balance } & \$ 16,400 & \text { Adjusted book balance } & \$ 16,400 \
\hline
\end{array}$$ One of the adjusting journal entries that Clayborn must record as a result of the bank reconciliation includes:

Question

Clayborn Company' bank reconciliation as of May 31 is shown below. $$\begin{array} { | l | r | r | r | } 
\hline \text { Bank balance } & \$ 15,800 & \text { Book balance } & \$ 17,025 \
\hline \text { + Deposit in transit } & 5,200 & \text { Bank service fees } & - 25 \
\hline \text { - Outstanding checks } & \underline { 4,600 } & \text { NSF returned } & \underline { - 600 } \
\hline \text { Adjusted bank balance } & \$ 16,400 & \text { Adjusted book balance } & \$ 16,400 \
\hline
\end{array}$$ One of the adjusting journal entries that Clayborn must record as a result of the bank reconciliation includes:

Quizplus · Accepted Answer

The NSF check of $600 needs to be recorded as a reduction in the cash account, hence a credit to Cash of $600 is required.

Clayborn Company' Bank Reconciliation as of May 31 Is Shown