The Journal Entry to Reverse the Entry of a Customer's

question 17

Multiple Choice

The journal entry to reverse the entry of a customer's nonsufficient funds check would include a:

• A)debit to Cash.
• B)credit to Cash.
• C)debit to Accounts Payable.
• D)credit to Accounts Receivable.

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or business activity.

Fixed Costs

Expenses that do not vary with the volume of output, including costs like rent, salaries, and insurance premiums.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs, indicating its profitability.

Variable Costs

Costs that vary directly with the level of production or volume of output.