A Bank Statement Included a NSF Check from Kim Fields

question 39

Multiple Choice

A bank statement included a NSF check from Kim Fields for $2,100. The journal entry to record this reconciling item should:

• A)debit NSF and credit Cash for $2,100.
• B)debit Accounts Receivable and credit Cash for $2,100.
• C)debit Cash and credit NSF for $2,100.
• D)debit Cash and credit Accounts Receivable for $2,100.

Understand provisions and warranties, and how they impact financial statements.

Understand how to compute various financial metrics and their significance, such as working capital and current ratio.

Ability to execute payroll computations, including gross earnings, tax withholdings, and net pay.

Grasp the concept and recording implications of warranty expenses and associated journal entries.

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Definitions:

Pullman Strike

A nationwide railroad strike in the United States in 1894 that significantly affected rail traffic and led to federal intervention.

Efficiency

The ability to achieve maximum productivity with minimum wasted effort or expense, often utilized in economic and operational contexts.

Working Conditions

The environment and terms under which employees work, including hours, safety, physical demands, and legal rights.

Supreme Court

The highest court in the United States, with ultimate judicial authority to interpret and decide upon the constitutionality of laws.