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Collection of Note Receivable

Collection of Note Receivable - (To record NSF check Bank...

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Collection of Note Receivable. This entry involves four accounts. Assuming that the interest of $50 has not been recorded and the collection fee is charged to Miscellaneous Expense, the entry is: Miscellaneous Expense Notes Receivable Interest Revenue (To record collection of note receivable by bank) Book Error. An examination of the cash disbursements journal shows that check No. 443 was a payment on account to Andrea Company, a supplier. The correcting entry is: Accounts Payable—Andrea Company (To correct error in recording check No. 443)
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NSF Check. As indicated earlier, an NSF check becomes an accounts receivable to the depositor. The entry is: Accounts Receivable—J. R. Baron
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Unformatted text preview: (To record NSF check) Bank Service Charges. Companies typically debit to Miscellaneous Expense the check printing charges (DM) and other bank service charges (SC) because they are usually small in amount. Laird's entry is: Miscellaneous Expense (To record charge for printing company checks) The foregoing entries could also be combined into one compound entry. After Laird posts the entries, the Cash account will appear as in Illustration 7-10 . The adjusted cash balance in the ledger should agree with the adjusted cash balance per books in the bank reconciliation in Illustration 7-9 . Illustration 7-10 Adjusted balance in cash account...
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