The March bank statement for Jem's Jewelers showed an NSF check for $125.On the bank reconciliation,the amount of the check should be ________.

Question

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An NSF (Non-Sufficient Funds) check is a check that cannot be processed because the account it is drawn on does not have enough funds. When reconciling the bank statement, the amount of the NSF check should be deducted from the balance per books because it was previously recorded as a deposit, increasing the book balance, but it has now been returned and not honored by the bank.

The March Bank Statement for Jem's Jewelers Showed an NSF