If Durango Co. writes an NSF check for $100, it will need to subtract that $100 from its bank account balance on the bank reconciliation.

Question

Quizplus · Accepted Answer

An NSF (non-sufficient funds) check written by Durango Co. would not be subtracted from its own bank account balance; instead, it would be subtracted from the recipient's account balance. Durango Co. would need to adjust its records if it initially recorded the check as a payment.