The Bank Statement for Tetra Company Contained the Following Items

Multiple Choice

The bank statement for Tetra Company contained the following items: a bank service charge of $10; a credit memo for interest earned, $15; and a $50 NSF check from a customer. The company had outstanding checks of $100 and a deposit in transit of $300. Which of the following will be caused by recording the customer's NSF check?

A) Accounts receivable increases.
B) Cash decreases.
C) Stockholders' equity decreases.
D) Accounts receivable increases and cash decreases.