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The following items appear on a bank reconciliation. Classify each item as (a) an addition to the bank balance, (b) a subtraction from the bank
The following items appear on a bank reconciliation. Classify each item as (a) an addition to the bank balance, (b) a subtraction from the bank balance, (c) an addition to the book balance, or (d) a subtraction from the book balance. 1. Outstanding cheques Bank error: The bank credited our account for a deposit made by another bank 2. customer. 3. Service charge 4. Deposits in transit 5. NSF cheque 6. Bank collection of a note receivable on our behalf 7. Book error: We debited Cash for $100. The correct debit was $1,000
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