What Journal Entry Must Be Prepared When the Company Is

question 9

Multiple Choice

What journal entry must be prepared when the company is notified by the bank that a customer's check that had been deposited in the amount of $776 was returned NSF?

• A)Debit Accounts Receivable and credit Cash in the amount of $776.
• B)Debit Cash and credit Accounts Receivable in the amount of $776.
• C)Debit NSF Check Expense and credit Accounts Receivable in the amount of $776.
• D)No journal entry is necessary.

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Definitions:

Test Statistic

A measure calculated from sample data during a hypothesis test used to determine whether to reject the null hypothesis.

T-Distribution

A probability distribution that arises when estimating the mean of a normally distributed population in situations where the sample size is small and population standard deviation is unknown.

Confidence Interval

A set of numerical values, obtained from statistical analysis of a sample, which is expected to encompass the actual value of a parameter from a larger, unspecified population.

Standard Error

An estimate of the standard deviation of a sampling distribution, reflecting the accuracy with which a sample represents a population.