After preparing the bank reconciliation,an NSF check would result in which of the following when recording the adjustment to the company's cash balance?

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An NSF (non-sufficient funds) check is a check that is returned by the bank because the account of the issuer of the check does not have sufficient funds to cover the amount of the check. When recording the adjustment to the company's cash balance, a debit should be made to Accounts Receivable to reduce the amount of the company's accounts receivable balance. This is because the NSF check was previously recorded as revenue (i.e., a sale made on credit), but since the check bounced, the company did not actually receive cash for that sale. Therefore, the amount of the NSF check needs to be deducted from the Accounts Receivable balance.

After Preparing the Bank Reconciliation,an NSF Check Would Result in Which