Which bank reconciliation items adjust the books?
Items adjust the books when the bank has recorded something that the company has not recorded yet, or when the company recorded something incorrectly.
Common book-side items include bank service charges, interest income, NSF checks, electronic collections, automatic loan payments, and company errors. These usually require journal entries because the cash ledger is wrong or incomplete.
Deposits in transit and outstanding checks usually do not adjust the books because the company already recorded them.
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