Answered: Notification by the bank that a…

Notification by the bank that a deposited customer check was returned NSF requires that the company make the following journal entry:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Notification by the bank that a deposited customer check was returned NSF requires that the company make the following journal entry:

Cash

Accounts Receivable

No journal entry is required.

Accounts Receivable

Cash

Miscellaneous Expense

Accounts Receivable

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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None
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