Which of the Following Transactions Requires a Journal Entry

question 55

Multiple Choice

Which of the following transactions requires a journal entry?

• A)The bank charged $50 for a stop payment on a check.
• B)The bank deducted $50 from your account in error which they will fix.
• C)The bank collected a note receivable with interest on your behalf.
• D)A and C

Apply the percentage of sales method and the aging of accounts receivable method for estimating bad debts.

Understand the treatment and implications of dishonored notes in accounting.

Recognize the classification and impact of notes receivable on financial statements.

Explain the rationale behind using notes receivable in lieu of overdue accounts receivable.

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Definitions:

CERCLA Trust Fund

A fund established under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) for cleaning up hazardous waste sites in the United States.

Tax

A compulsory financial charge or some other type of levy imposed by a governmental organization on individuals or entities to fund government spending and various public expenditures.

Environmental Impact Statement

A document that explains the significant effects of a proposed project on the environment.

Proposed Federal Action

Any action for which a Federal agency is considering implementing which may include new regulations, changes in policy, or government projects.