Which of the following items appearing on a bank reconciliation require a journal entry to bring the Cash account up-to-date?
A) Deposit in transit
B) Check from customers returned as NSF
C) Outstanding check
D) An error made by the bank in recording a deposit

Question

Quizplus · Accepted Answer

A journal entry is required for the check from customers returned as NSF, as this results in a decrease in cash. The other items can be reconciled without a journal entry - Deposit in transit and outstanding checks are simply adjusted on the bank reconciliation, and errors made by the bank are corrected by the bank directly.

Which of the Following Items Appearing on a Bank Reconciliation