After preparing a bank reconciliation,the collection of a note by the bank on a company's behalf would be recorded with a:
A)Credit to Notes Receivable.
B)Credit to Cash.
C)Debit to Notes Receivable.

Question

Quizplus · Accepted Answer

A credit to Notes Receivable is correct because when the bank collects a note on behalf of the company, the company's Notes Receivable account decreases, reflecting that the note has been paid.

After Preparing a Bank Reconciliation,the Collection of a Note by the Bank