If the bank reconciliation includes a bank service charge,a journal entry is required,which debits Bank Expense and credits Cash.

Question

Quizplus · Accepted Answer

This is true because the bank service charge represents an expense incurred by the company, which needs to be recorded in the accounting system. The journal entry for this transaction would be to debit the Bank Expense account (increasing expenses) and credit the Cash account (decreasing assets).

If the Bank Reconciliation Includes a Bank Service Charge,a Journal