Record in general journal form the adjusting entry for the

Question

Montgomery Stationery's bank statement contained a $260 NSF check that one of its customers had written to pay for supplies purchased.

Required: 

a. Show the effects of recognizing the NSF check on the financial statements by recording the appropriate amounts in a horizontal statements model like the following one:

b. Is the recognition of the NSF check on Montgomery's books an asset source, use, or exchange transaction? 

c. Suppose the customer redeems the check by giving Montgomery $290 cash in exchange for the bad check. The additional $30 paid a service fee charged by Montgomery. Show the effects on the financial statements in the horizontal statements model in Requirement a. 

d. Is the receipt of cash referenced in Requirement c an asset source, use, or exchange transaction? 

e. Record in general journal form the adjusting entry for the NSF check and the entry for redemption of the check by the customer.