The bank statement ending balance is $45 lower than the general ledger bank balance. On the bank statement, there is a line item for bank charges and fees of $45.

How should the adjustment be recorded in the general ledger?

1. Debit Bank fee expense$45 and Credit bank account $45

2. Debit bank account $45 and Credit bank fees expense $45

3. Debit retained earnings $45 and Credit bank account $45

4. Debits bank fees expense $45 and Credit retained earnings $45

5. Debit bank account $45 and Credit retained earnings $45

Each account has an opening or carry-forward balance and would record transactions as either a debit or credit in separate columns and the ending or closing balance.

The adjustments for the line item bank charges and fees are:

1. Debit Bank fee expense$45 and Credit bank account $45

Reason:

This is the correct option because the fee expense is the cash outflow so debited and been paid by the cheque so has been credited with the bank account.

The wrong options are:

2. Debit bank account $45 and Credit bank fees expense $45

3. Debit retained earnings $45 and Credit bank account $45

4. Debits bank fees expense $45 and Credit retained earnings $45

5. Debit bank account $45 and Credit retained earnings $45

Reason:

These options are wrong because these will not lead to adjustments rather will increase the balance of the bank statement.

To know more about the ledger entries and adjustments, refer to the link below:

https://brainly.com/question/23088372