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When Preparing the Monthly Bank Reconciliation,the Accountant for Tiffany Toys

Question 63

Multiple Choice

When preparing the monthly bank reconciliation,the accountant for Tiffany Toys noted that a cheque received from a customer last month for $89 was marked NSF and returned along with the bank statement.To correct the cash account balance,the accountant recorded an adjusting entry.This entry required a debit to which of the following accounts?


A) Cash.
B) Bad debt expense.
C) Trade receivables.
D) Sales.

Correct Answer:

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