PE 8-2A Items on company’s bank statement

The following items may appear on a bank statement: 1. EFT payment 2. Note collected for company 3. Bank correction of an error from recording a $7,200 deposit as $2,700 4. Service charge Using the format shown below, indicate whether each item would appear as a debit or credit memo on the bank statement and whether the item would increase or decrease the balance of the company’s account.


Item No.
Appears on the Bank Statement as a Debit or Credit Memo
Increases or Decreases the Balance of the Company’s Bank Account

Answer:

                      Appears on the Bank       Increases or Decreases  
     Statement as a Debit        the Balance of the
Item No.        or Credit Memo         Company’s Bank Account
1                          debit memo                  decreases
2                          credit memo                 increases
3                          credit memo                 increases
4                          debit memo                  decreases

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