Accompanying the bank statement was a debit memo for bank service charges. What entry is required in the company's accounts? a. debit Miscellaneous Administrative Expense; credit Cash b. debit Cash; credit Accounts Payable c. debit Accounts Payable; credit Cash d. debit Cash; credit Other Income

Accompanying the bank statement was a debit memo for bank service charges. What entry is required in the company's accounts? a. debit Miscellaneous Administrative Expense; credit Cash b. debit Cash; credit Accounts Payable c. debit Accounts Payable; credit Cash d. debit Cash; credit Other Income

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter10: Auditing Cash And Marketable Securities

Section: Chapter Questions

Problem 37RSCQ

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Question

Accompanying the bank statement was a debit memo for bank service charges. What entry is required in the company's accounts?
a. debit Miscellaneous Administrative Expense; credit Cash
b. debit Cash; credit Accounts Payable
c. debit Accounts Payable; credit Cash
d. debit Cash; credit Other Income

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