Question
When preparing a bank reconciliation, a debit memorandum for $200 was on Smythe Co.'s bank statment for a NSF check that was received from a
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When preparing a bank reconciliation, a debit memorandum for $200 was on Smythe Co.'s bank statment for a NSF check that was received from a customer. The check had been included in an earlier deposit when it was received from the customer. The NSF check had not been recorded previously by Smythe Co. Which of the following statement correctly details what should be done with this $200 NSF check when preparing the reconciliation?
Add $200 for the NSF check to the bank statement balance section
Deduct $200 for the NSF check from the bank statement balance section
Add $200 for the NSF check to the checkbook balance section
Deduct $200 for the NSF check from the checkbook balance section
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