Included in the bank statement was a debit for an NSF (not sufficient funds)cheque received from a customer.What entry is required in the company's accounts?
A) Dr Other revenue$\quad $$\quad $$\quad $Cr Cash
B) Dr Cash$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $Cr Other revenue
C) Dr Cash$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $Cr Accounts receivable
D) Dr Accounts receivable$\quad $$\quad $Cr Cash

Question

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The company needs to reverse the credit entry made when the customer's cheque was originally received in order to reflect the fact that it was never actually received. This means debiting the Accounts Receivable account and crediting the Cash account.

Included in the Bank Statement Was a Debit for an NSF