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Esau Writes a Check Drawn on Flex Bank to Pay

Question 26

Multiple Choice

Esau writes a check drawn on Flex Bank to pay Grey Office Supply for six filing cabinets.Later,Esau discovers defects in the goods and orders the bank to stop payment on the check.Esau does not renew the order,and the bank clears the check eight months later.The bank


A) must recredit Esau's account and substitute acceptable goods.
B) must recredit Esau's account or substitute acceptable goods.
C) must substitute acceptable goods but not recredit Esau's account.
D) need not recredit Esau's account or substitute acceptable goods.

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