The journal entry to reverse the entry of a customer's nonsufficient funds cheque would include a
A) debit to Cash.
B) credit to Cash.
C) debit to Accounts Payable.
D) credit to Accounts Receivable.

Question

Quizplus · Accepted Answer

The entry to reverse the entry of a customer's nonsufficient funds cheque would include a credit to Cash. This is because the original entry credited Cash (increasing the balance in the account) when the cheque was deposited, but now the cheque has bounced and the bank has debited Cash (decreasing the balance in the account) to reverse the deposit.

The Journal Entry to Reverse the Entry of a Customer's