Which of the following adjustmnts will require the company to record a debit memo sent by the bank?
a. The bank collected a $550 note receivable, plus interest, which had not been recorded in the company's journal.
b. The company recently made a $692.28 deposit that has not yet been recorded on the bank statement.
c. The company erroneously recorded a check written for $363.21 as $633.21.
d. A $535.00 check from a customer, Phil Conners, was returned by the bank because of insufficient funds (NSF).
e. There are two checks outstanding (not yet recorded by the bank) that were written for $845.50 and $506.45
Answer:B?
In order to determine which adjustment requires the company to record a debit memo sent by the bank, let's analyze each option:
a. The bank collected a $550 note receivable, plus interest, which had not been recorded in the company's journal.
This adjustment would require the company to record a credit memo as the bank is adding funds to the company's account, not subtracting.
b. The company recently made a $692.28 deposit that has not yet been recorded on the bank statement.
This adjustment does not require the company to record a debit memo since the company is adding funds to the bank account, not subtracting.
c. The company erroneously recorded a check written for $363.21 as $633.21.
This adjustment requires the company to record a debit memo as it is reducing the funds in the bank account to correct the error.
d. A $535.00 check from a customer, Phil Conners, was returned by the bank because of insufficient funds (NSF).
This adjustment requires the company to record a debit memo as it is reducing the funds in the bank account due to the returned check.
e. There are two checks outstanding (not yet recorded by the bank) that were written for $845.50 and $506.45.
This adjustment does not require the company to record a debit memo since the company has already recorded the checks in its records.
Based on this analysis, the adjustment that requires the company to record a debit memo sent by the bank is option d.