Dance Town Academy The items listed below were identified while preparing a bank reconciliation for the company's checking account as of March 31,2013.
$\begin{array}{ll}
\text { Cash balance according to the general ledger } & ? \
\text { Bank statement balance } & \$ 18,500 \
\text { Outstanding checks } & 2,700 \
\text { Customer's bounced check } & 350 \
\text { Bank service charges } & 100 \
\text { Deposits in transit } & 1,000 \
\text { Interest earned on the checking account } & 60
\end{array}$
-Refer to Dance Town Academy.How will the customer's bounced checks be handled on a bank reconciliation?

Question

Dance Town Academy The items listed below were identified while preparing a bank reconciliation for the company's checking account as of March 31,2013.
$\begin{array}{ll}
\text { Cash balance according to the general ledger } & ? \
\text { Bank statement balance } & \$ 18,500 \
\text { Outstanding checks } & 2,700 \
\text { Customer's bounced check } & 350 \
\text { Bank service charges } & 100 \
\text { Deposits in transit } & 1,000 \
\text { Interest earned on the checking account } & 60
\end{array}$ 
-Refer to Dance Town Academy.How will the customer's bounced checks be handled on a bank reconciliation?

Quizplus · Accepted Answer

The customer's bounced check represents a decrease in the company's checking account balance that has not yet been reflected on the bank statement. Therefore, it should be subtracted from the balance according to the company records.

Dance Town Academy the Items Listed Below Were Identified While