Enclosed with the bank statement received by Sydney Company at October 31 was an NSF check for $300.No entry has yet been made by the company to reflect the bank's action in charging back the NSF check.During preparation of the bank reconciliation,the NSF check should be:

Question

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The NSF (Non-Sufficient Funds) check should be deducted from the balance per the depositor's records because it represents money that the company thought it had received but actually did not due to the check bouncing. This adjustment is necessary to reflect the true available cash balance in the company's records.

Enclosed with the Bank Statement Received by Sydney Company at October