Accompanying a bank statement for Borden Company is a credit memo for $21,200 representing the principal ($20,000) and interest ($1,200) on a note that had been collected by the bank. The company had been notified by the bank at the time of the collection but had made no entries. Journalize the entry that should be made by the company to bring the accounting records up to date?

Bank reconciliation is a statement carried out by a company to know the difference between cash balance per book and cash balance per bank.

A journal is needed by a company to keep day to day updates of records.

Explanation:

Banks prepares statement of account. the Borden company has updates its own records from their end. most times times the balance of cash per bank and per book rarely work well or agree.

Bank reconciliation is a statement that is prepared by a company to know the disagreement and dissimilarity of cash balance per book and cash balance per bank

A record journal entry must be made by the company to  have a good update of their records.

An example of a journal is shown below

Date, Account and explanation, post reference, Debit($), Credit ($)

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