X Company used the following items to complete its bank reconciliation for the month of October: ∙ Deposits in transit were $2,500.
∙ Outstanding checks totaled $1,100.
∙ Bank service charges were $10.
∙ The company correctly wrote a check for $192,but mistakenly recorded the check as $129 on its books.The bank cashed the check correctly for $192.
∙ A customer's check for $50 was returned by the bank,NSF.
How should the check for $192 that was recorded as $129 be treated?

Question

Quizplus · Accepted Answer

The bank correctly cashed the check for $192, so the balance per bank statement should be higher by $63 ($192 minus $129). Therefore, the check for $192 that was recorded as $129 should be deducted from the balance per books, since the company recorded less than it actually spent.

X Company Used the Following Items to Complete Its Bank