If a credit memo appears on a bank reconciliation, this could be an indication that:
A) there has been a decrease the company's bank account
B) there has been a bank service charge
C) there has been a deposit of a customer's NSF check
D) there has been a note receivable for the company that was collected by the bank.

Question

Quizplus · Accepted Answer

A credit memo on a bank reconciliation indicates that the bank has collected a note receivable on behalf of the company, resulting in an increase in the company's bank account balance.

If a Credit Memo Appears on a Bank Reconciliation, This