What Effect Does a Credit Memo in a Bank Statement Have on the Cash Account?

Answer

A debit memo in a bank statement of a cash account has the same effect as that of a written check. If a debit memo appears on your bank statement, the amount listed with it has been deducted from your account balance.
Q&A Related to "What Effect Does a Credit Memo in a Bank Statement..."
Debit and Credit memos will increase or decrease the figure in the Cash account on a company's Balance Sheet. For example, if a business makes a loan payment in cash, they will be
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Because it's taken from the company's cash balance - and credited to the company's account. The company's books must balance - therefore, the cash is taken from one account and paid
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One example could be interest earned on the account. In this case, you would debit Cash and credit Interest Earned.
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A debit memo in a bank statement usually means that your cash decreased by a fee or by something unusual. This is also the case with debit memos in credit card ...
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