Final answer:
Outstanding checks do not require an adjusting journal entry since the company has already accounted for them in its financial records.
Step-by-step explanation:
Among the options provided for bank reconciliation items, outstanding checks would not result in an adjusting journal entry in the company's books. When a company writes a check, it immediately records the transaction in its cash disbursements journal and its general ledger. Therefore, these outstanding checks are already reflected in the company's financial statements. A bank reconciliation is used to match the company's cash balance with the bank statement balance. Items such as service charges, a customer's check returned NSF (non-sufficient funds), interest earned on deposits, and errors made by the company in recording cash receipts would result in adjustments to the company's cash account to reflect its true balance. However, since outstanding checks represent amounts that the company has already deducted from its cash account but the bank has not yet processed, they do not require any adjustment in the company's books.