A review of the bank statement and accounting records of the Blake Company revealed the following items: 1) Three outstanding checks2) A debit memo showing a bank service charge 3) A deposit in transit 4) An NSF check written by one of Blake's customers 5) A certified check written by Blake6) A credit memo reflecting interest revenue earned by BlakeWhich of the item (s) would be subtracted from the company's unadjusted book balance to determine the true cash balance?

Question

Reina Lloyd

Business

2 December, 10:30

A review of the bank statement and accounting records of the Blake Company revealed the following items: 1) Three outstanding checks2) A debit memo showing a bank service charge 3) A deposit in transit 4) An NSF check written by one of Blake's customers 5) A certified check written by Blake6) A credit memo reflecting interest revenue earned by BlakeWhich of the item (s) would be subtracted from the company's unadjusted book balance to determine the true cash balance?

+2

Answers (1)

Know the Answer?

Yusuf Haley · Answer 1

2) A debit memo showing a bank service charge

4) An NSF check written by one of Blake's customers

Explanation:

For determining the true cash balance, we have to deduct the following items which are shown below:

1) A debit memo showing a bank service charge

2) An NSF check was written by one of Blake's customers

These both the items should be deducted because in the bank service charge and NSF check, the bank deduct the charges from the customer account.

The other items would not affect the company's unadjusted book balance. So, we do not consider it.