During the month of July, Clanton Industries issued a check in the amount of $767 to a supplier on account. The check did not clear the bank during July. In preparing the July 31 bank reconciliation, the company should:

Question

Business

Little Bear

19 October, 08:22

During the month of July, Clanton Industries issued a check in the amount of $767 to a supplier on account. The check did not clear the bank during July. In preparing the July 31 bank reconciliation, the company should:

+2

Answers (1)

Know the Answer?

Richard Franco · Answer 1

The Company should deduct the check amount from the bank balance.

Explanation:

Since Clanton Industries had issued a check in the amount of $767 to a supplier on account in which the check did not clear the bank.

Which means in preparing the bank reconciliation, the company should go ahead and deduct the check amount of $767 from the bank balance because the check did not clear the bank which means it is of no use for the check amount to still remain in the bank balance.