Journal Entries for Bank Reconciliation quiz #1 Flashcards
Journal Entries for Bank Reconciliation quiz #1
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What journal entry should be made when a bank collects money on behalf of a company during the bank reconciliation process?
Debit Cash and credit Accounts Receivable to reflect the receipt of cash and reduction in customer debt. How should a company record an electronic funds transfer (EFT) received from a customer after bank reconciliation?
Debit Cash and credit Accounts Receivable, as the company receives cash and reduces the amount owed by the customer. What is the appropriate journal entry for an electronic funds transfer (EFT) payment made to a supplier identified during bank reconciliation?
Debit Accounts Payable to reduce the liability and credit Cash to show the cash outflow. How are bank service charges recorded in the company's books after bank reconciliation?
Debit a bank fee expense account and credit Cash to reflect the reduction in cash due to the service charge. What journal entry is made for interest revenue earned and identified during bank reconciliation?
Debit Cash to increase cash and credit Interest Revenue to recognize the earned revenue. How should a company adjust its books for a not sufficient funds (NSF) check discovered during bank reconciliation?
Debit Accounts Receivable and credit Cash to reverse the previous entry that recorded the check as received. What is the process for correcting book errors found during bank reconciliation?
Reverse the incorrect entry and make the correct entry to remove the effects of the error, ensuring the books accurately reflect the transaction. What journal entry should be made when a bank collects money on behalf of a company during the bank reconciliation process?
Debit Cash and credit Accounts Receivable to reflect the receipt of cash and reduction in customer debt. How should a company record an electronic funds transfer (EFT) received from a customer after bank reconciliation?
Debit Cash and credit Accounts Receivable, as the company receives cash and reduces the amount owed by the customer. What is the appropriate journal entry for an electronic funds transfer (EFT) payment made to a supplier identified during bank reconciliation?
Debit Accounts Payable to reduce the liability and credit Cash to show the cash outflow.
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