Dawes Pty Ltd received its monthly bank statement showing bank charges of $20.The transaction should be recorded as:

Question

Quizplus · Accepted Answer

The bank charges of $20 should be recorded in the company's account books to accurately reflect the expenses incurred. The entry to record this transaction should debit the Bank charges account for $20 and credit the Cash account for $20. Option C is the correct choice as it reflects the above entry. Options A and B do not appropriately record the transaction, and Option D is not a valid choice as a record is necessary to maintain accurate accounts.

Dawes Pty Ltd Received Its Monthly Bank Statement Showing Bank