Business, 29.11.2020 14:20 milkshakegrande101
Montgomery Stationery’s bank statement contained a $260 NSF check that one of its customers had written to pay for supplies purchased.
Required
Show the effects of the following transactions on the financial statements in the horizontal statements model. (a) Recognize the NSF check, (c) Customer redeems the check by giving Montgomery $290 cash in exchange for the bad check. The additional $30 was a service fee charged by Montgomery. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity and NA to indicate the element is not affected by the event. (Enter any decreases to account balances and cash outflows with a minus sign.)
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