A debit or credit memo describing entries in the company's bank account may be enclosed with the bank statement. An example of a credit memo is
A) deposited checks returned for insufficient funds
B) a promissory note left for collection
C) a service charge
D) notification that a customer's check for $375 was recorded by the company as $735 on the deposit ticket

Question

Quizplus · Accepted Answer

A credit memo increases the bank balance. A promissory note left for collection is an example of a credit memo because it indicates an increase in the bank account when the note is collected.

A Debit or Credit Memo Describing Entries in the Company's