Question

on august 29\, received notice from the bank of a dishonored check from valley landscaping, $185.00 plus $40.00 fee; total $225.00. memorandum 52.

date	account title	doc. no.	post ref.	debit	credit

1. why is accounts receivable debit in a dishonored check transaction?
2. journalizing an electronic funds transfer. a computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents is called

Explanation:

Question 11

A dishonored check means the customer (Valley Landscaping) didn't fulfill payment, so the amount owed (Accounts Receivable) increases. Debiting Accounts Receivable reflects this increase in the amount the business is owed, as the check's non - payment re - establishes the receivable.

An electronic funds transfer (EFT) is a computerized cash payments system that transfers funds without checks, currency, or other paper documents. This is a standard definition in accounting for such a system.

Answer:

When a check is dishonored, the customer (Valley Landscaping) still owes the amount. Debiting Accounts Receivable increases the balance of what the business is owed, as the non - payment of the check means the debt is reinstated (or recognized as still outstanding).

Question 12