What Journal Entry Must Be Prepared When the Company Is

Multiple Choice

What journal entry must be prepared when the company is notified by the bank that a customer's check that had been deposited in the amount of $776 was returned NSF?

A) Debit Accounts Receivable and credit Cash in the amount of $776.
B) Debit Cash and credit Accounts Receivable in the amount of $776.
C) Debit NSF Check Expense and credit Accounts Receivable in the amount of $776.
D) No journal entry is necessary.