If a Bank Statement Includes an EFT Payment of $945

question 24

Multiple Choice

If a bank statement includes an EFT payment of $945 for insurance, the journal entry to record this reconciling item should include a:

• A)debit to Cash for $945.
• B)debit to Accounts Payable for $945.
• C)credit to Cash for $945.
• D)credit to Prepaid Insurance for $945.