Ignoring GST, What Is the Correct Accounting Entry That Would

question 18

Multiple Choice

Ignoring GST, what is the correct accounting entry that would need to be made for a customer's cheque for $2800 that has been dishonoured?

• A) DR Bank $2800; CR Accounts receivable $2800
• B) DR Accounts receivable $2800; CR Bank $2800
• C) DR Accounts receivable $2800; CR Accounts payable $2800
• D) DR Accounts receivable $2800; CR Discount allowed $2800

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Definitions:

Tariff

A tax imposed on imported goods to protect domestic industries or to generate revenue.

Tariff Revenue

Income that governments earn from imposing taxes on imported goods to protect domestic industries or generate income.

Economic Strategy

A plan of action designed to achieve specific financial or market objectives.

Exports

Items or services that are manufactured in one nation and purchased by consumers in a different country.