The following items could appear on a bank reconciliation: a. Outstanding checks, $670. b. Deposits in transit, $1,500. c. NSF check from customer, no. 548, for $175. d. Bank collection of note receivable of $800, and interest of $80. e. Interest earned on bank balance, $20. f. Service charge, $10. g. The business credited Cash for $200. The correct amount was $2,000. h. The bank incorrectly decreased the business's by $350 for a check written by another business. Classify each item as

(1) an addition to the book balance,

(2) a subtraction from the book balance,

(3) an addition to the bank balance, or

(4) a subtraction from the bank balance.

Question

Jayla Price

Business

8 July, 10:05

The following items could appear on a bank reconciliation: a. Outstanding checks, $670. b. Deposits in transit, $1,500. c. NSF check from customer, no. 548, for $175. d. Bank collection of note receivable of $800, and interest of $80. e. Interest earned on bank balance, $20. f. Service charge, $10. g. The business credited Cash for $200. The correct amount was $2,000. h. The bank incorrectly decreased the business's by $350 for a check written by another business. Classify each item as

(1) an addition to the book balance,

(2) a subtraction from the book balance,

(3) an addition to the bank balance, or

(4) a subtraction from the bank balance.

+2

Answers (1)

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Davian · Answer 1

A) a subtraction from the bank balance

B) an addition to the bank balance

C) a subtraction from the book balance

D) an addition to the book balance

E) an addition to the book balance

F) a subtraction from the book balance

G) a subtraction from the book balance

H) an addition to the bank balance