Which of the following would be included in a journal to record an NSF check?
A) A debit to Accounts payable and a credit to Cash
B) A debit to Accounts receivable and a credit to Cash
C) A debit to Cash and a credit to Accounts receivable
D) A debit to Miscellaneous expense and a credit to Cash

Question

Quizplus · Accepted Answer

NSF check means that the check was not honored by the bank due to insufficient funds. Therefore, the account receivable created when the check was received must be reversed, and the cash must be credited back to the customer. This is done by debiting Accounts receivable and crediting Cash.

Which of the Following Would Be Included in a Journal