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Which of the Following Items Found on a Bank Reconciliation

question 1

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Which of the following items found on a bank reconciliation does NOT require an adjusting entry?


Definitions:

Notes Receivable Account

An account on the balance sheet representing claims for payments from customers or other parties due within a year or more.

Dishonored Notes

Refer to promissory notes that have not been paid by the maker at maturity.

Accounts Receivable Method

A technique for estimating the amount of uncollectible accounts receivable and setting aside an allowance for bad debts, reflecting more accurate financial statements.

Allowance for Doubtful Accounts

A contra asset account that reduces the total receivables on the balance sheet by the amount estimated to be uncollectible.

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