A Customer's Check for $1,210 Was Returned for Nonsufficient Funds $$\begin{array} { | c | r | r | } \hline \text { Accounts Receivable } & 1,210 & \\\hline \text { Cash } & & 1,210 \\\hline\end{array}$$

question 56

Multiple Choice

A customer's check for $1,210 was returned for nonsufficient funds. Which of the following journal entries is needed to adjust for the NSF check?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Receivable } & 1,210 & \\
• \hline \text { Cash } & & 1,210 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 1,210 & \\
• \hline \text { Sales Revenue } & & 1,210 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { NSF Check } & 1,210 & \\
• \hline \text { Cash } & & 1,210 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Payable } & 1,210 & \\
• \hline \text { Cash } & & 1,210 \\
• \hline
• \end{array}\]

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Definitions:

RRSP

Registered Retirement Savings Plan, a Canadian investment vehicle for individuals to save for retirement while taking advantage of tax deferrals.

Years

Years are units of time that measure the duration or length of time an event has occurred or is expected to occur, usually related to financial calculations or investments.

Invest

To allocate resources, usually money, with the expectation of generating an income or profit.

Investments

Assets purchased with the expectation that their value will grow or generate income.