Which of the Following Would Be Included in a Journal

question 50

Multiple Choice

Which of the following would be included in a journal to record an NSF check?

• A) A debit to Accounts payable and a credit to Cash
• B) A debit to Accounts receivable and a credit to Cash
• C) A debit to Cash and a credit to Accounts receivable
• D) A debit to Miscellaneous expense and a credit to Cash

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Definitions:

Merchandise Purchased

Goods bought by a business for the purpose of resale, forming part of its inventory.

Cost Of Goods Available

The total cost of all merchandise or materials available for sale or use, including beginning inventory plus purchases.

Purchase Returns

Goods returned by the buyer to the supplier due to defects, inaccuracies in shipment, or other discrepancies.

Allowances

A deduction from the gross amount on an invoice by the buyer for goods purchased or to cover some type of shortcoming.