Concept explainers
Find the correct option, the option that explains the accounting treatment of customer’s note collected by bank.
![Check Mark](/static/check-mark.png)
Answer to Problem 1MCQ
The correct answer is option (a).
Explanation of Solution
Bank reconciliation: Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom agree. Bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and cash balance per books.
Justification for correct answer: Note receivable being collected by bank, is credited to bank account. But the company is not aware of it. So, while preparing
Hence, options (b), (c), (d), and (e) are incorrect, and the option (a) is the correct answer.
Want to see more full solutions like this?
Chapter 8 Solutions
Principles of Financial Accounting.
- What is the thus option of this question general Accountingarrow_forwardPlease help me correct my mistakes. If theres X beside the number that means the number is wrong, if theres X beside the account that means its the wrong account for the T accounts of 2022 and 2023, the options for accounts names are bad debt expense, collections, credit sales and write offsarrow_forwardchose best answer financial accountingarrow_forward
- College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College PubSurvey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage LearningFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
- Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:CengageExcel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337280570/9781337280570_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)