Accompanying the bank statement was a debit memo for bank service charges. On the bank reconciliation, the item is
A) a deduction from the balance per company's records
B) an addition to the balance per bank statement
C) a deduction from the balance per bank statement
D) an addition to the balance per company's records

Question

Quizplus · Accepted Answer

A debit memo for bank service charges indicates that the bank has deducted this amount from the company's account. Therefore, it should be recorded as a deduction from the balance per the company's records during the bank reconciliation process.

Accompanying the Bank Statement Was a Debit Memo for Bank