Watkis Company received its February bank statement, which included a memo indicating that the check of Sarah Company for $652 had been returned as "NSF." Watkis' bank reconciliation should list this check as a(n):

Question

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In order to reconcile to the bank statement, the $652 non-sufficient-funds (NSF) check should be subtracted from the general ledger cash account balance, since $652 less was added to the bank account balance, than was recorded in the general ledger.

Watkis Company Received Its February Bank Statement, Which Included a Memo