When a Customer's NSF Check Is Returned to a Business

question 182

Multiple Choice

When a customer's NSF check is returned to a business with its bank statement, the business should make a journal entry increasing

• A) Cash.
• B) Accounts Receivable.
• C) A net loss.
• D) Expense for Bad Debts.

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Definitions:

Worthy of Acceptance

Deserving approval or endorsement.

First Condition

An initial requirement or circumstance that must be met for something else to happen or be considered.

Fourth Condition

A term which can have multiple context-specific meanings, but generally refers to an additional, often unanticipated requirement or circumstance.