Accounting for IGCSE & O level - Accounting Procedures (Section 5 - No. 21)
What journal entry is recorded when a customer's cheque bounces?
Debit Cash, Credit Accounts Receivable.
Debit Accounts Receivable, Credit Cash.
Debit Sales, Credit Customer.
Debit Bank Charges, Credit Bank.
Explanation
The customer still owes the amount, so the account is debited.
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