Term
What are Deposits in transit?
How are they corrected? |
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Definition
cash deposits that do not appear on the bank statement
they must be added to the bank statement balance |
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Term
What are outstanding checks?
How are they corrected? |
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Definition
Checks that a company mails to a creditor that still haven't been processed and deposited by the creditor
they must be subtracted from the bank statement balance |
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Term
| What's the bank do w/an NSP check? |
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Definition
| the bank returns the check to the depositor and deducts the check amount from the depositor's account |
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Term
| what's an NSF check stand for? |
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Definition
| a non-sufficient fund check |
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Term
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Definition
| A check previously recorded as part of a deposit that bounces cuz there are not sufficient funds in the issuer's checking account |
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Term
| How do you fix NSF checks? |
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Definition
| must be subtracted from the company's book balance on the bank reconciliation |
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Term
| What happens with bank error? |
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Definition
| the bank balance must be adjusted on the bank reconciliation |
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Term
| What happens with a book error? |
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Definition
| , the book balance must be adjusted on the bank reconciliation and a correcting entry must be journalized and posted to the general ledger |
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Term
| Interest Earned on bank balance |
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Definition
| must be added to the company's book balance on the bank reconciliation |
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Term
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Definition
| Unrecorded service charges must be subtracted from the company's book balance on the bank reconciliation |
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