Accompanying the bank statement was a debit memo for bank service charges. What entry is required in the company's accounts?
A) debit Miscellaneous Administrative Expense; credit Cash
B) debit Cash; credit Other Income
C) debit Cash; credit Accounts Payable
D) debit Accounts Payable; credit Cash

Question

Quizplus · Accepted Answer

Bank service charges are considered as Miscellaneous Administrative Expense and should be debited to that account while the payment is made through cash, which will be credited.

Accompanying the Bank Statement Was a Debit Memo for Bank