Clayborn Company' bank reconciliation as of May 31 is shown below.
$\begin{array}{|l|r|l|r|}
\hline \text { Bank balance } & \$ 15,80 &\text { Book balance } & \$ 17,025 \
\hline \text { Deposit in transit } & 5,200&\text { Bank service fees } &-25 \
\hline \text { Outstanding checks } & -4,60& \mathrm{dNSF} \text { returned } &-600 \
\hline \text { ated hant } & \$ 16,400&\text { Adjusted book balance } & \$16,400\
\hline
\end{array}$

One of the adjusting journal entries that Clayborn must record as a result of the bank reconciliation includes:

Question

Clayborn Company' bank reconciliation as of May 31 is shown below.
$\begin{array}{|l|r|l|r|}
\hline \text { Bank balance } & \$ 15,80 &\text { Book balance } & \$ 17,025 \
\hline \text { Deposit in transit } & 5,200&\text { Bank service fees } &-25 \
\hline \text { Outstanding checks } & -4,60& \mathrm{dNSF} \text { returned } &-600 \
\hline \text { ated hant } & \$ 16,400&\text { Adjusted book balance } & \$16,400\
\hline
\end{array}$

One of the adjusting journal entries that Clayborn must record as a result of the bank reconciliation includes:

Quizplus · Accepted Answer

The NSF (Non-Sufficient Funds) check returned of $600 requires an adjusting entry to decrease the book balance, which involves crediting Cash for $600 to reflect the reduction in the company's available funds due to the returned check.

Clayborn Company' Bank Reconciliation as of May 31 Is Shown