Journal entries are required if the bank reconciliation includes outstanding checks.

Name: Journal entries are required if the bank reconciliation includes outstanding checks.
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Question

Quizplus · Accepted Answer

Outstanding checks are accounted for in the bank reconciliation process to adjust the bank statement balance, but they do not require a separate journal entry since they have already been recorded in the company's cash account when the checks were issued.

Journal Entries Are Required If the Bank Reconciliation Includes Outstanding