The amount of the sale when paid by debit and credit cards is placed into the Undeposited Funds account.When the actual bank deposit is made, the amount is deposited into the checking or bank account.

Question

Quizplus · Accepted Answer

The Undeposited Funds account is used in accounting to hold funds received from credit and debit card sales until they are batched and deposited into the bank account, at which point the funds are transferred from the Undeposited Funds account to the actual bank account in the accounting records.

The Amount of the Sale When Paid by Debit and Credit