A NSF cheque would always result in a journal entry by the company.

Question

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When a company receives a NSF (non-sufficient funds) cheque, it means the cheque bounces because the person who wrote it did not have enough money in their account to cover it. As a result, the company needs to reverse the initial receipt of the cheque and record a loss for the amount of the cheque. This requires a journal entry which would be recorded in the accounting system.

A NSF Cheque Would Always Result in a Journal Entry