After completing a bank reconciliation, you are preparing journal entries to agree the New Horizons Company's Cash account balance with the reconciled balance shown on the reconciliation.
Which of the following requires a journal entry?

Question

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An NSF check, is a check from an individual or company that had an insufficient cash balance in the bank when the holder of the check presented it to the bank for payment. The original entry recorded when the check was received from the customer was a debit to Cash and a credit to Accounts Receivable. This entry needs to be reversed with a debit to Accounts Receivable and a credit to Cash.

After Completing a Bank Reconciliation, You Are Preparing Journal Entries