A Day Spa Accepted a Check from a Customer as Payment

question 34

Multiple Choice

A Day Spa accepted a check from a customer as payment for services.Unfortunately,the customer's check bounced.The journal entry required on the company's books as a result of this bank reconciliation item will:

• A)decrease total assets
• B)decrease stockholders' equity
• C)both a and b
• D)have no net impact on total assets

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Definitions:

Reasonable Person

A legal standard used to determine how an average person would responsibly act under similar circumstances.

Society Expect

The anticipations or beliefs regarding behavior, norms, or achievements considered standard or desirable by a community or group.

Duty Of Care

Duty of care is a legal obligation to act with a certain level of attention, caution, and prudence to avoid harm to others or their properties.

Foreseeable Risks

Potential dangers or hazards that a reasonable person should be able to predict could occur under certain conditions.