Multiple Choice
When a depositor receives a bank statement indicating that there was a "NSF check," the depositor should do which of the following?
A) Reduce the cash account per the books for the amount of the "NSF check."
B) Reduce the cash account per the bank statement for the amount of the "NSF check."
C) Debit allowance for doubtful accounts for the amount of the check.
D) Increase the sales returns and allowances account.
Correct Answer:
Verified
Correct Answer:
Verified
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