Egrane,Inc

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 NSF check returned?

A) Debit Accounts Receivable and credit Cash for $560.
B) Debit Cash and credit Accounts Receivable for $560.
C) Debit Cash and credit Accounts Payable for $560.
D) No journal entry is necessary for this item.