Accountant recorded an adjusting entry


When preparing the monthly bank reconciliation, the accountant for Tiffany Toys noted that a check received from a customer last month for $89 was marked NSF and returned along with the bank statement. To correct the cash account balance, the accountant recorded an adjusting entry. This entry required a debit to:

a. Cash.

b. Bad debt expense.

c. Accounts receivable.

d. Sales.

e. None of the above is correct.

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Accounting Basics: Accountant recorded an adjusting entry
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