A Day Spa accepted a check from a customer as payment for services. Unfortunately, the customer's check bounced. The journal entry required on the company's books as a result of this bank reconciliation item will
A)decrease total assets.
B)decrease stockholders' equity.
C)Both a and
D)have no net impact on total assets.

Question

Quizplus · Accepted Answer

The Answer of A Day Spa accepted a check from a customer as payment for services. Unfortunately, the customer's check bounced. The journal entry required on the company's books as a result of this bank reconciliation item will
A)decrease total assets.
B)decrease stockholders' equity.
C)Both a and
D)have no net impact on total assets.

A Day Spa Accepted a Check from a Customer as Payment