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Notification by the Bank That a Customer's Deposited Cheque Was

Question 21

Multiple Choice

Notification by the bank that a customer's deposited cheque was returned NSF requires that the depositor make the following adjusting entry:


A) dr.Accounts Receivable cr.Cash
B) dr.Cash cr.Accounts Receivable
C) dr.Bank Charges Expense cr.Accounts Receivable
D) No adjusting entry is necessary.

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