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Question - Flynn Company's monthly bank statement showed the ending balance of cash of $18,500. The bank reconciliation for the period showed an adjustment for a deposit in transit of $1,500, outstanding checks of $2,000, a NSF check of $700, bank service charges of $30 and the EFT from a customer in payment of the customer's account of $1,500.
Use the information above to answer the following question. What is the up-to-date ending Cash balance?
$18,000
$17,230
$19,000
$19,270
Use the information above to answer the following question. What journal entry should be recorded by Flynn Company for the NSF check returned?
Debit Accounts Receivable and credit Cash for $700
Debit Cash and credit Accounts Receivable for $700
Debit Cash and credit Accounts Payable for $700
No journal entry is necessary for this item.
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