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Egrane, Inc.'s monthly bank statement showed the ending balance of cash of $14,800. The bank reconciliation for the period showed an adjustment for a deposit in transit of $1,200, outstanding checks of $1,600, a NSF check of $560, bank service charges of $24 and the EFT from a customer in payment of the customer's account of $1,200.
What journal entry should be recorded by Egrane for the NSF check returned?
(A) Debit Accounts Recelvable and credit Cosh for $560
(B) Debit Cosh and credit Accounts Receivable for $560
(C) Debit Cash and credit Accounts Payable for $560
(D) No joumal entry is necessary for this Item
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Egrane, Inc.'s monthly bank statement showed the ending balance of cash of $14,800. The bank reconci...
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