A Customer's Check for $1,200 Was Returned for Nonsufficient Funds

question 162

Multiple Choice

A customer's check for $1,200 was returned for nonsufficient funds.Which of the following journal entries is needed to adjust for the NSF check?

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Definitions:

Voidable Contract

A contract that remains valid until one party, who is entitled to do so because of a defect in the contract formation, chooses to void it.

Mixed Message

A communication that contains conflicting or contradictory information, leading to confusion or misunderstanding.

Rescission

The cancellation of a contract, returning all parties involved to their states prior to the contract's execution.

Innocent Representation

A truthful statement or declaration made without the intent to deceive, typically relevant in contracts or negotiations.