Which of the Following Would Be Included in the Journal

question 258

Multiple Choice

Which of the following would be included in the 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 Bank Expense and a credit to Cash

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Definitions:

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services delivered but not yet paid for.

Credit Policy

The guidelines that a company follows to determine the amount of credit to extend to customers or borrowers.

Conditional Sales Contract

An agreement where the sale of an asset is contingent upon certain conditions, typically involving the buyer making regular payments over time. If these conditions are met, ownership of the asset transfers from the seller to the buyer.

Title To The Goods

The legal right to own, possess, or sell a particular set of goods or merchandise, often involved in transactions and disputes.