Agnes has a checking account and she has just received her March bank statement that shows an ending balance of $250.Agnes' records indicate an ending balance of $220.In looking over the data you notice that two checks Agnes wrote totaling $75 had not yet cleared the bank,while a deposit for $40 that she mailed had not been received by the bank.There also was a $5 bank service charge.To adjust her records,Agnes should
A)reduce her book balance by $5.
B)increase the bank balance by $40.
C)call the bank and tell them that their balance is incorrect.
D)do nothing,everything seems in good order.

Question

Quizplus · Accepted Answer

Agnes needs to reduce her book balance by the $5 bank service charge to reconcile her records with the bank statement. The deposit that she mailed for $40 and the two checks that have not yet cleared the bank will need to be accounted for in the next bank statement.

Agnes Has a Checking Account and She Has Just Received