Which of the reconciling items listed below require an entry in the company's accounts? (None of the transactions reported by bank debit and credit memos have been recorded by the company.) Answer Yes or NoItemEntry Required1. Bank service charges, $90. 2. Check of a customer returned by bank to company because of insufficient funds, $520. 3. Check for $420 incorrectly recorded by the company as $240. 4. Check for $1,440 incorrectly charged by bank as $140. 5. Deposit in transit, $5,310. 6. Outstanding checks, $10,370. 7. Note collected by bank, $12,600.

Reasoning: Bank service charges are to be recorded in the books by the company since it is…

Answered: Which of the reconciling items listed…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the reconciling items listed below require an entry in the company's accounts? (None of the transactions reported by bank debit and credit memos have been recorded by the company.) Answer Yes or No

Item	Entry Required
1. Bank service charges, $90.
2. Check of a customer returned by bank to company because of insufficient funds, $520.
3. Check for $420 incorrectly recorded by the company as $240.
4. Check for $1,440 incorrectly charged by bank as $140.
5. Deposit in transit, $5,310.
6. Outstanding checks, $10,370.
7. Note collected by bank, $12,600.

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