If a credit memorandum appears on a bank reconciliation,this could be an indication that there has been a
A)decrease the company's bank account.
B)bank service charge.
C)customer's NSF check.
D)note receivable collected by the bank for the company.

Question

Quizplus · Accepted Answer

A credit memorandum on a bank reconciliation indicates that the bank has collected a note receivable on behalf of the company, which results in an increase in the company's bank account. This means that the bank has credited the company's account for the amount collected. Therefore, options A (decrease the company's bank account), B (bank service charge), and C (customer's NSF check) are not correct in this scenario.

If a Credit Memorandum Appears on a Bank Reconciliation,this Could