Question

Scotch Services received a credit memorandum from the bank. During the bank reconciliation, it should

a. increase its cash account on the company’s books.
b. decrease its cash account on the company’s books.
c. increase the ending cash balance on the bank statement.
d. decrease the ending cash balance on the bank statement.

Answer 1

The correct answer is letter (A) increase its cash account on the company’s books..

Scotch Services received a credit memorandum from the bank. During the bank reconciliation, it should (A) increase its cash account on the company’s books.