Accounting for IGCSE & O level - Accounting Procedures (Section 8 - No. 9)
Which of the following entries should be recorded in the sales ledger after a customer pays with a dishonored check?
Debit the customer's account and credit the bank account.
Debit the customer's account and debit the bank account.
Credit the customer's account and debit the bank account.
Credit the customer's account and credit the bank account.
Explanation
When a customer’s check is dishonored, the bank account must be credited (as the money will not be in the account), and the customer's account must be debited (as the money is still owed).
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