The bank statement ending balance is $45 lower than the general ledger bank balance. On the bank statement, there is a line item for bank charges and fees of $45.
How should the adjustment be recorded in the general ledger?
1. Debit Bank fee expense$45 and Credit bank account $45
2. Debit bank account $45 and Credit bank fees expense $45
3. Debit retained earnings $45 and Credit bank account $45
4. Debits bank fees expense $45 and Credit retained earnings $45
5. Debit bank account $45 and Credit retained earnings $45
Answers: 1
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