What journal entry is prepared for a check with insufficient funds for payment?
A)No entry is prepared.
B)Debit Cash and credit Accounts Payable.
C)Debit Cash and credit Notes Payable.
D)Debit Accounts Receivable and debit Cash.

Question

Quizplus · Accepted Answer

When a check is returned due to insufficient funds, the original payment is reversed by debiting Accounts Receivable and crediting Cash to reflect the unpaid amount.

What Journal Entry Is Prepared for a Check with Insufficient