Egrane,Inc.'s monthly bank statement showed the ending balance of cash of $14,800.The bank reconciliation for the period showed an adjustment for a deposit in transit of $1,200,outstanding checks of $1,600,a NSF check of $560,bank service charges of $24 and the EFT from a customer in payment of the customer's account of $1,200. What journal entry should be recorded by Egrane for the EFT?

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An EFT occurs when a customer electronically transfers funds from his or her bank account to the company's bank account.To process this EFT,the accounting department debits Cash and credits Account Receivable for $1,200.