Accounting for IGCSE & O level - Accounting Procedures (Section 4 - No. 16)
A customer has a credit balance on their account. The bank has dishonored a check. What should you do?
Debit the customer’s account and credit the bank account
Debit the bank account and credit the customer’s account
Credit the customer’s account and debit the bank account
Debit the customer’s account.
Explanation
When a check bounces, a receivable amount will increase so the customer account should be debited.
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