BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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collection of a note receivable.
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bank errors.
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an NSF check.
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bank service charges.
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Detailed explanation-1: -Journal entries are required by the depositor for all of the following except: A. collection of a note receivable.
Detailed explanation-2: -There is no journal entry needed for outstanding checks. Outstanding checks are checks already recorded on the company’s books, but they have not yet appeared on the bank statement.
Detailed explanation-3: -Typically, you will record the Bank’s mistake using a Journal Entry. To review your other options, see this article. If the Bank mistakenly took too much money, you would Credit the Bank Account for the additional amount.
Detailed explanation-4: -Examples of Journal Entries for Bank Reconciliation Check printing charges. Customer checks that were deposited but are now returned as NSF (not sufficient funds) Bank fees for returned checks. Corrections made by the bank for the company’s errors in its deposits.
Detailed explanation-5: -There are two ways to make correcting entries: reverse the incorrect entry and then use a second journal entry to record the transaction correctly, or make a single journal entry that, when combined with the original but incorrect entry, fixes the error.