Identify each of the following reconciling items as a an


Identify each of the following reconciling items as: (a) an addition to the cash balance according to the bank statement, (b) a deduction from the cash balance according to the bank statement, (c) an addition to the cash balance according to the company's records, or (d) a deduction from the cash balance according to the company's records. (None of the transactions reported by bank debit and credit memos have been recorded by the company.)

  • Bank service charges, $36.
  • Check drawn by company for $375 but incorrectly recorded by company as $735.
  • Check for $50 incorrectly charged by bank as $500.
  • Check of a customer returned by bank to company because of insufficient funds, $1,200.
  • Deposit in transit, $12,375.
  • Outstanding checks, $14,770.
  • Note collected by bank, $10,600.

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Finance Basics: Identify each of the following reconciling items as a an
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