Dance Town Academy
The items listed below were identified while preparing a bank reconciliation for the company's chequing account as of March 31.
$\begin{array}{lr}
\text { Cash balance according to the general ledger } &?\
\text { Bank statement balance } & \$ 18,500 \
\text { Outstanding cheques } & 2,700\
\text { Customer's bounced cheque } & 350 \
\text { Bank service charges } & 100 \
\text { Deposits in transit } & 1,000 \
\text { Interest earned on the chequing account } & 60
\end{array}$
-Refer to the figure Dance Town Academy.How will the customer's NSF cheques be handled on a bank reconciliation?

Question

Dance Town Academy
The items listed below were identified while preparing a bank reconciliation for the company's chequing account as of March 31.
 $\begin{array}{lr}
\text { Cash balance according to the general ledger } &?\
\text { Bank statement balance } & \$ 18,500 \
\text { Outstanding cheques } & 2,700\ 
\text { Customer's bounced cheque } & 350 \
\text { Bank service charges } & 100 \
\text { Deposits in transit } & 1,000 \
\text { Interest earned on the chequing account } & 60
\end{array}$
-Refer to the figure Dance Town Academy.How will the customer's NSF cheques be handled on a bank reconciliation?

Quizplus · Accepted Answer

NSF cheques indicate that the customers' cheques are bounced, and the bank has deducted the amount from the company's account. Therefore, the company's balance from their records needs to be reduced by the amount of the NSF cheques. Hence, the NSF cheques will be subtracted from the balance from the company records.

Dance Town Academy the Items Listed Below Were Identified While

Dance Town Academy
the Items Listed Below Were Identified While