14 Points To prepare a bank reconciliation, indicate whether each item requires an adjustment to the bank statement balance or to the book balance. Then, indicate whether that adjustment would be an addition or deduction to/from the respective balance. . Connect is automatically grading this, so please make sure your answer in the Bank or Book column says EITHER Bank or Book, exactly, and your answer in the Add or Deduct column says EITHER Add or Deduct, exactly. If any other word is typed in, Connect will mark it wrong Bank or Book Add or Deduct A service charge is imposed by the bank. A check listed as outstanding on the previous period's reconciliation is still outstanding at the end of this month. A customer's check returned by the bank is marked "Not Sufficient Funds (NSF)". A deposit mailed to the bank on the last day of the current month is not recorded on this month's bank statement. A check paid by the bank at its correct $190 amount was recorded in error in the company's check register as $109. An unrecorded credit memorandum indicating that the bank collected a note receivable for Rembrant Company and deposited the proceeds in the company's account. A check written in the current period is not yet paid or returned by the bank