A bank reconciliation included an outstanding check of $850 for the payment of salaries.The journal entry to record this reconciling item:
A)should debit Salaries Expense and credit Cash for $850.
B)should debit Cash and credit Salaries Expense for $850.
C)should debit Accounts Payable and credit Cash for $850.
D)is not required.

Question

Quizplus · Accepted Answer

Outstanding checks are checks that have been written and recorded in the company's cash ledger but have not yet been cashed by the recipient and cleared by the bank. Since the company has already recorded the expense and the reduction in cash when the check was written, no additional journal entry is required for the reconciliation process.

A Bank Reconciliation Included an Outstanding Check of $850 for the Payment