A Customer's Check for $1,280 Was Returned for Nonsufficient Funds

question 146

Multiple Choice

A customer's check for $1,280 was returned for nonsufficient funds.Which of the following journal entries is needed to adjust for the NSF check?

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Definitions:

Nonmonetary Assets

Assets that cannot be quickly converted into cash, such as property, plant, and equipment, as well as intangible assets.

Asset Surrendered

A situation or transaction where an asset is given up by its owner, which could be due to sale, exchange, forfeiture, or similar circumstances.

Undepreciated Cost

Undepreciated cost refers to the original cost of an asset minus any depreciation that has been claimed to date, reflecting its current book value.

Business Automobile

A vehicle owned and used by a company for business operations or activities.