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Accounting. Audit and Tax
 CPAnet Forum : Accounting. Audit and Tax
Subject Topic: NSF Check (Topic Closed Topic Closed) Post ReplyPost New Topic
  
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sapjenny
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Joined: 21 Apr 2011
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Posts: 2
Posted: 21 Apr 2011 at 20:31 | IP Logged  

Hello,

What will be the journal entries for a check returned by te bank for Non Sufficient funds in the customers account.

All the following journal entries are in the books of Business

1) Sold a Laptop to Customer John for $200

   Journal Entry

                John A/R (Dr)   $200

                     Sales Revenue    $200

2) John issued a check for $200 to the business

      Journal Entry

                  Check (Cash)     $200

                        John A/r         &nb sp;  $200

 

3) Check Bounced & Bank charged $10 as charges

What will be the journal entries from the point of business?

 

Thx

 

     

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