The Documentation with the Bank Statement Shows a Debit Memo

question 18

Multiple Choice

The documentation with the bank statement shows a debit memo for bank service charges.Based on this, what possible entry would be made in the company's accounts?

• A) debit Miscellaneous Administrative Expense; credit Cash
• B) debit Cash; credit Other Income
• C) debit Cash; credit Accounts Payable
• D) debit Accounts Payable; credit Cash

---

Definitions:

Direct Labor

The work of factory employees that can be easily traced to the production of specific goods or services.

Factory Overhead

Indirect manufacturing costs not directly tied to production, including maintenance, utilities, and equipment depreciation.

Direct Labor

The wages or salaries paid to employees directly involved in the production of goods or services.

Finished Product

An item that has undergone the entire manufacturing process and is available for purchase.