Which of the Following Is Characteristic of a Credit Memo

Multiple Choice

Which of the following is characteristic of a credit memo and its relationship to a company's bank reconciliation procedures?

A) It must be recorded as a credit to the balance per the customer's records.
B) It is issued to notify a company of bank service charges that need to be recorded on the company's records.
C) It is issued when a customer gives the company an NSF cheque that needs to be recorded on the company's records.
D) It must be recorded as a debit to the balance per the company's records.