Which of the following is characteristic of a credit memo and its relationship to a company's bank reconciliation procedures?

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A credit memo is a document issued by a bank or business to reduce the amount that a customer owes to the company. It is recorded as a debit to the balance per the company's records because it reduces the amount owed to the company. In terms of bank reconciliation procedures, the credit memo will be added to the bank statement balance and deducted from the company's records balance on the bank reconciliation form.

Which of the Following Is Characteristic of a Credit Memo