The following information is available to reconcile Sleepy Time Bedding's book balance of cash with its bank statement cash balance as of July 31:
What is the appropriate journal entry to record the collection made by the bank?
A) Debit to cash $9,500 credit to accounts receivable $9,500.
B) Credit to accounts receivable $9,500 credit to cash $9,500.
C) Debit to cash $9,452 debit to collection expense $48 credit accounts receivable $9,500.
D) Debit to cash $9,452 debit to collection expense $48 credit notes receivable $9,500.
E) No adjusting entry is necessary.
Correct Answer:
Verified
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