To Record a NSF Cheque, You Can -

question 10

Multiple Choice

To record a NSF cheque, you can -

• A) re-enter the original sales invoice to restore the balance owing
• B) reverse the receipt from the adjusting receipt screen
• C) make a general journal entry that debits Accounts Receivable and credits the bank account for the cheque amount
• D) use any of the above methods to record the NSF transaction correctly

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Definitions:

Journal Entry

A record in accounting that documents a business transaction in the general ledger.

Government Regulation

Government regulation refers to the laws and rules established by governmental bodies that impose restrictions, requirements, or obligations on the operations of businesses and individuals.

Corporate Form of Organization

A legal structure utilized by businesses that allows them to be recognized as separate legal entities from their owners, providing benefits like limited liability.

Income Tax

A tax levied by governments on the income earned by individuals and businesses.