Which of the following journal entries is recorded as a result of the bank reconciliation process to record a NSF check for $250?
A) Cash 250
Accounts Receivable 250

B) Cash 250
Accounts Payable 250

C) Accounts Receivable 250
Cash 250

D) Accounts Receivable 250
Petty Cash 250

Question

Which of the following journal entries is recorded as a result of the bank reconciliation process to record a NSF check for $250?
A) Cash 250
Accounts Receivable 250

B) Cash 250
Accounts Payable 250

C) Accounts Receivable 250
Cash 250

D) Accounts Receivable 250
Petty Cash 250

Quizplus · Accepted Answer

A NSF (non-sufficient funds) check means the check was not honored by the bank, so the company needs to reverse the cash receipt and increase accounts receivable, indicating the customer still owes the amount.

Which of the Following Journal Entries Is Recorded as a Result