Accompanying the bank statement was a debit memo for bank service charges. What entry is required in the company's accounts?
A) debit Miscellaneous Expense; credit Cash
B) debit Cash; credit Other Income
C) debit Cash; credit Accounts Payable
D) debit Accounts Payable; credit Cash

Question

Quizplus · Accepted Answer

Bank service charges are classified as miscellaneous expenses, therefore they should be debited to Miscellaneous Expense account and credited to Cash account.

Accompanying the Bank Statement Was a Debit Memo for Bank