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College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
Publisher: South-Western College Pub
ISBN: 9781337280570
BuyFind

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
Publisher: South-Western College Pub
ISBN: 9781337280570

Solutions

Chapter
Section
Chapter 6, Problem 4QY
Textbook Problem

What is the journal entry to record an NSF check, from J. Smith for $250, that is returned with the bank statement?

  1. a. Cash $250 DR; NSF Check $250 CR
  2. b. Accounts Receivable $250 DR; Cash $250 CR
  3. c. NSF Check $250 DR; Accounts Receivable $250 CR
  4. d. Cash $250 DR; Accounts Receivable $250 CR
  5. e. Cash $250 DR; Miscellaneous Expense $250 DR

Expert Solution
To determine

Find the correct option, the option that indicates the correct journal entry for the given transaction.

Explanation of Solution

Non-sufficient checks (NSF): When the customer bank returns the deposited check to the depositor’s bank indicating that there are insufficient funds in the account, such returned or bounced check is referred to as NSF check.

Prepare journal entry to record NSF check.

DateAccount Titles and ExplanationRef.Debit ($)Credit ($)
  Accounts Receivable 250 
   Ca...

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Chapter 6 Solutions

College Accounting (Book Only): A Career Approach
Show all chapter solutions
Ch. 6 - What is the purpose of endorsing a check?Ch. 6 - Why is there generally a difference between the...Ch. 6 - Indicate whether the following items in a bank...Ch. 6 - Why is it necessary to make general journal...Ch. 6 - a. Why would a business use a Petty Cash Fund? b....Ch. 6 - a. What does a debit balance in Cash Short and...Ch. 6 - Fill in the missing amounts for the following bank...Ch. 6 - The Ledger Balance of Cash section of the bank...Ch. 6 - When the bank statement is received on July 3, it...Ch. 6 - Place a check mark in the column that indicates...Ch. 6 - Hosung Companys Cash account shows a balance of...Ch. 6 - Record entries in general journal form to record...Ch. 6 - At the end of the day, the cash register tape...Ch. 6 - a. Describe the entries that have been posted to...Ch. 6 - Arthurs Mens Shop deposits all receipts in the...Ch. 6 - On May 1 of this year, Ellsworth and Company...Ch. 6 - Ellie Harrod, owner of Harrods Dry Cleaners, makes...Ch. 6 - On August 31, Baginski and Company receives its...Ch. 6 - The Quilt Shop deposits all receipts in the bank...Ch. 6 - Merkle Company deposits all receipts in the bank...Ch. 6 - On March 1 of this year, Stowe Company established...Ch. 6 - Roberta Felino, owner of Robertas Beauty Salon,...Ch. 6 - On August 2, Northern Motel receives its bank...Ch. 6 - Jims Fitness Center deposits all receipts in the...Ch. 6 - BDO USA, LLP and Grant Thornton, LLP are...Ch. 6 - As the new bookkeeper for a small business, you...Ch. 6 - You work as a cashier for a service business. Some...

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