A Bank Statement Included a NSF Check from Customer Kim

question 21

Multiple Choice

A bank statement included a NSF check from customer Kim Fields for $2,100.The journal entry to record this reconciling item should:

• A)debit NSF and credit Cash for $2,100.
• B)debit Cash and credit Accounts Receivable for $2,100.
• C)debit Accounts Receivable and credit Cash for $2,100.
• D)debit Cash and credit NSF for $2,100.

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Definitions:

E-Marketplace

An online platform where buyers and sellers meet to exchange goods, services, or information, often facilitated by a third-party.

Forward Auctions

A traditional auction format where an item or service is offered to multiple buyers, and the price increases with each new bid until the highest bid wins.

Sell-Side Marketplaces

Online platforms where sellers list products or services for sale to potential buyers in a digital environment.

Reverse Auction

A type of auction in which sellers bid for the prices at which they are willing to sell their goods and services, effectively inverting the traditional auction dynamic.