In Preparing the Monthly Bank Reconciliation, Jon Ltd Ascertains That

Multiple Choice

In preparing the monthly bank reconciliation, Jon Ltd ascertains that there is a direct credit from a customer for $500 and an interest on overdraft charge of $760. Outstanding cheques total $9 400 and there is a deposit in transit for $2 900. It will be necessary to make journal entries for:

A) the outstanding cheques of $9 400 and the deposit in transit of $2 900.
B) the direct credit for $500 and the interest charge of $760.
C) only the interest on overdraft charge of $760.
D) the direct credit for $500, the interest charge of $760 and outstanding cheques of $9 400.