The Journal Entry to Record an NSF Check Would Require

question 38

Multiple Choice

The journal entry to record an NSF check would require a

• A)debit to Accounts Receivable and a credit to Cash.
• B)debit to Cash and a credit to Accounts Receivable.
• C)debit to Accounts Payable and a credit to Cash.
• D)debit to Miscellaneous Expense and a credit to Cash.
• E)debit to Cash and a credit to Accounts Payable.

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Definitions:

Selling Price

The price at which a product or service is sold to the consumer.

Mercola

A brand and website known for its health-based products and controversial wellness information.

Break-even

The point in business where revenues equal expenses, resulting in no net loss or gain.

Mark-up

Extra costs applied to the basic price of goods for overhead absorption and profitability.