4. The bank collected a note receivable for the company for $1,200 plus $48 interest revenue. 5. A NSF check for $328 from a customer was returned with the statement How we should journalize item #4? Cash debit 1248 notes receivable 1200 and interest revenue 48 credit Cash debit 1248 notes receivable 1248 credit Cash debit 1248 notes payable 1200 and interest revenue 48 credit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The bank statement for M Company indicates a balance of $830 on July 31. The cash
balance per books had a balance of $390 on this date.
The following information pertains to the bank transactions for the company.
1. Deposit of $840, representing cash receipts of July 31, did not appear on the bank
statement.
2. Outstanding checks totaled $390.
3. Bank service charges for July amounted to $30.
4. The bank collected a note receivable for the company for $1,200 plus $48 interest
revenue.
5. A NSF check for $328 from a customer was returned with the statement
How we should journalize item #4?
Cash debit 1248 notes receivable 1200 and interest revenue 48 credit
Cash debit 1248 notes receivable 1248 credit
Cash debit 1248 notes payable 1200 and interest revenue 48 credit
None of them
Transcribed Image Text:The bank statement for M Company indicates a balance of $830 on July 31. The cash balance per books had a balance of $390 on this date. The following information pertains to the bank transactions for the company. 1. Deposit of $840, representing cash receipts of July 31, did not appear on the bank statement. 2. Outstanding checks totaled $390. 3. Bank service charges for July amounted to $30. 4. The bank collected a note receivable for the company for $1,200 plus $48 interest revenue. 5. A NSF check for $328 from a customer was returned with the statement How we should journalize item #4? Cash debit 1248 notes receivable 1200 and interest revenue 48 credit Cash debit 1248 notes receivable 1248 credit Cash debit 1248 notes payable 1200 and interest revenue 48 credit None of them
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