Question

question 19 (5 points) during a bank reconciliation, bach inc. discovered a nsf check from their customer, larry bobble, for $70. the journal entry required to update the cash balance is a) no journal entry is required. b) debit accounts receivable—l. bobble, credit cash c) debit accounts receivable, credit cash d) debit cash, credit accounts receivable

Explanation:

When a company discovers a non - sufficient funds (NSF) check from a customer, the customer still owes the money. So, the accounts receivable from that specific customer (Larry Bobble in this case) needs to be increased (debit) and the cash balance, which was overstated when the NSF check was initially thought to be valid, needs to be decreased (credit).

Answer:

B. Debit Accounts Receivable—L. Bobble, credit Cash