Corbin Company was charged $25 for a check printing fee associated with their checking account.What journal entry is required?
A)Debit Miscellaneous Expense for $25 and credit Accounts Payable for $25.
B)Debit Miscellaneous Expense for $25 and credit Accounts Receivable for $25.
C)Debit Miscellaneous Expense for $25 and credit Cash for $25.
D)No journal entry is required.

Question

Quizplus · Accepted Answer

Since the company was charged $25 for the check printing fee, it should be recorded as an expense in the Miscellaneous Expense account. The cash account should also be credited because the company paid the fee in cash. Therefore, the journal entry should be to debit Miscellaneous Expense for $25 and credit Cash for $25. Accounts Payable and Accounts Receivable are not applicable in this scenario.

Corbin Company Was Charged $25 for a Check Printing Fee