Asked by Doris Mansueto on May 05, 2024

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In preparing a bank reconciliation, the amount indicated by a debit memo for bank service charges is added to the balance per company's records.

Debit Memo

A document issued by a buyer to a seller indicating an amount owed to the buyer, often due to a return or an error in billing.

Bank Service Charges

Fees charged by a bank to its customers for account maintenance and other financial services.

Company's Records

Official documents and files that contain the historical data, transactions, and operational information of a business.

  • Acknowledge the significance and methodology of bank reconciliation in protecting cash assets.
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KA
Kristen AzanaMay 06, 2024
Final Answer :
False
Explanation :
In preparing a bank reconciliation, the amount indicated by a debit memo for bank service charges is subtracted from the balance per company's records, not added, to adjust for expenses the bank has charged to the account.