Accompanying the bank statement was a debit memo for an NSF check received from a customer. This item would be included on the bank reconciliation as a(n) a. addition to the balance per bank statement b. addition to the balance per company's records c. deduction from the balance per bank statement d. deduction from the balance per company's records

Question

05-08-2019
Business

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Accompanying the bank statement was a debit memo for an NSF check received from a customer. This item would be included on the bank reconciliation as a(n) a. addition to the balance per bank statement b. addition to the balance per company's records c. deduction from the balance per bank statement d. deduction from the balance per company's records

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agrippa agrippa · Answer 1 · 2019-08-09T07:41:01+02:00

Answer:

NSF check is also called bounced check, NSF stands for Non-Sufficient Funds. These checks cannot be cashed because of insufficient funds in the payer's account. A client needs to pay bank fees for negotiating a check with non- Sufficient funds. All the banks charge a fee for the bounced check. In case of non sufficient funds, there is deduction from the balance as per the banks statement.