A debit memorandum appeared on Cinco Inc.'s May bank statement.How will Cinco treat this amount on its May bank reconciliation?
A) Add it to the bank balance
B) Add it the book balance
C) Deduct from the bank balance
D) Deduct from the book balance

Question

Quizplus · Accepted Answer

A debit memorandum on a bank statement indicates an amount deducted by the bank from the account. Therefore, to reconcile, it should be deducted from the book balance to match the bank's records.

A Debit Memorandum Appeared on Cinco Inc