The journal entry to reverse the entry of a customer's nonsufficient funds check 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

When reversing the entry of a customer's nonsufficient funds check, the original credit to Accounts Receivable must be reversed with a debit to Accounts Receivable. The check amount that was previously credited to Cash must now be debited from Cash, and there is no involvement of Accounts Payable in this transaction. Therefore, the correct entry would be a credit to Cash.

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