Debit memorandum
Some banks charge a monthly fee for their services. Often they charge this fee only when the average monthly balance in a checking account falls below a specified amount. They identify the fee, called a bank service charge, on the bank statement by a symbol such as SC. The bank also sends with the statement a debit memorandum explaining the charge noted on the statement. Other debit memoranda may also be issued for other bank services such as the cost of printing checks, issuing traveler’s checks, and wiring funds to other locations. The symbol DM is often used for such charges.
More from this Section
- Organization costs
Costs incurred in the formation of a corporation are called organization costs. These ... - Salvage value
Salvage value is an estimate of the asset’s value ate the end of its useful life. This ... - Right of stockholders
Stockholders have the right to Vote in election of board of directors at annual meeting ... - Full-disclosure principle
The full-disclosure principle requires that companies disclose all circumstances and events ... - Debit
Debit is an entry that records an increase in assets, a decrease in liabilities, or a ...