Answered: Notification by the bank that a…

Notification by the bank that a deposited customer check was returned NSF requires that the company make the following journal entry:

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter10: Accounting For Sales And Cash Receipts

Section: Chapter Questions

Problem 3CE

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Question

Notification by the bank that a deposited customer check was returned NSF requires that the company make the following journal entry:

Cash

Accounts Receivable

No journal entry is required.

Accounts Receivable

Cash

Miscellaneous Expense

Accounts Receivable

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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