Which of the following is FALSE regarding Deposits in Transit & Outstanding Checks? We do NOT record journal entries for Deposits in Transit & Outstanding checks when we do the bank reconciliation process. We always add Deposit in Transit and subtract Outstanding Checks, and this can be either on the bank side or the books' side. If we reconciled the Deposits in Transit and the Outstanding Checks, the balance on the bank side will get adjusted. Deposits in Transit are checks received and recorded in the books but not yet reflected on our bank account. The Outstanding checks are our checks that we give away and record in our books but not yet cleared from our bank account