Link's entry to record the NSF check will

Question

Quizplus · Accepted Answer

When Link records the NSF check, the Accounts Receivable account will increase because the customer's debt to the company has not been collected. The Cash account will decrease because the company will not receive the funds from the returned check. Overall, this transaction will not affect the total amount of assets, as the decrease in the Cash account will be offset by the increase in the Accounts Receivable account. Therefore, all of these options are correct.

Link's Entry to Record the NSF Check Will