College Accounting (Book Only): A ...

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

College Accounting (Book Only): A ...

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


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 

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Chapter 6 Solutions

College Accounting (Book Only): A Career Approach
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