Final answer:
The required entry is a debit to Cash and a credit to Notes Receivable to reflect the collection of a short-term note by the bank, which is recorded in the company's accounts after a credit memo is issued by the bank.
Step-by-step explanation:
The entry required in the company's accounts to record the transaction accompanying the bank statement, which includes a credit memo for a short-term note collected by the bank on behalf of the company, involves increasing the company's cash balance and decreasing its notes receivable. This journal entry reflects the bank's collection of the note receivable amount, remitting it to the company's account. Similar to Noel's attentiveness in catching a serious error in an equipment bill, careful reconciliation of bank statements with company accounts is essential to maintain accurate financial records.
The journal entry to record this transaction would typically be:
- Debit to Cash (increasing the asset account)
- Credit to Notes Receivable (decreasing the asset account)