Notification by the Bank That a Deposited Customer Check Was $\quad$

question 81

Short Answer

Notification by the bank that a deposited customer check was returned NSF requires that the company make the following adjusting entry: a. Accounts Receivable
$\quad$$\quad$ Cash
b. Cash
$\quad$$\quad$ Accounts Receivable
c. Miscellaneous Expense
$\quad$$\quad$ Accounts Receivable
d. No adjusting entry is necessary.

---

Definitions:

Recessionary Period

A phase in the economic cycle where there is a slowdown in economic activity, marked by reduced spending and increased unemployment.

Employee Layoffs

The act of temporarily or permanently terminating a group of employees from their jobs, often due to economic downturns, business restructuring, or organizational changes.

Inputs

The resources, materials, and effort required to produce goods or services in any organizational or production process.

Outputs

The results or products that come from the process of inputting resources like labor and capital into a production or activity system.