What entry is required in the company's accounts to record outstanding checks?
A) debit Accounts Receivable; credit Cash
B) debit Cash; credit Accounts Receivable
C) debit Cash; credit Accounts Payable
D) no entry required

Question

Quizplus · Accepted Answer

Outstanding checks are checks that have been written by the company but have not yet been cashed or cleared by the bank. They do not require an entry in the company's accounts because they have already been recorded when the check was initially written. The outstanding status affects the bank reconciliation process but does not alter the company's general ledger accounts.

What Entry Is Required in the Company's Accounts to Record