Following is a bank reconciliation for Zocar Enterprises for June 30, 2018 Cash

Question

Following is a bank reconciliation for Zocar Enterprises for June 30, 2018 Cash Account 5 1,918 Bank Statement $ 3,000 Balance as of 6/30/2018 Deposit in transit Outstanding checks Note collected by bank Bank service charge NSF check 600 (1,507) 2,000 (25) (1,800) Adjusted cash balance as of 6/30/2018 $ 2,093 $2,093 When reviewing the bank reconciliation, Zocar's auditor was unable to locate any reference to the NSF check on the bank statement. Furthermore, the clerk who reconciles the bank account and records the adjusting entries could not find the actual NSF check that should have been included in the bank statement. Finally, there was no specific reference in the accounts receivable supporting records identifying a party who had written a bad check. Required a. Prepare the adjusting entry that the clerk would have made to record the NSF check. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record adjusting entry for recognizing the NSF check. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal

Explanation / Answer

Adjustment entry for recognizing the NSF check Event General Journal Debit Credit 1 Accounts Receivable $1,800 Cash $1,800 (to record NSF check)

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