Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions
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.
-The entry to record the customer's NSF check will:

A) increase the Accounts Receivable balance.
B) decrease the Cash account.
C) decrease equity.
D) increase the Accounts Receivable balance and decrease the Cash account balance.