When preparing the monthly bank reconciliation,the accountant for Treetop Towers noted that all cash deposits for the month were listed on the bank statement except one for $1,200 that was made on the last day of the month.In reconciling the bank balance with the company's cash account,how should the $1,200 be recorded?

Question

Quizplus · Accepted Answer

The $1,200 deposit made on the last day of the month is likely a deposit in transit, which should be added to the bank balance to reconcile it with the company's cash account.

When Preparing the Monthly Bank Reconciliation,the Accountant for Treetop Towers