Asked by Jill

What is the journal entry for a bounced check.

For exemplar, on May 10, Mr. Smith pays his $1000 bill the a certain company, cash receipt #1. On May 12 the check is returned marked Not Sufficient Funds. Would the journal entry look like this.
debit credit
Accounts Receivable $1000
Cash $1000

Also, What source document would I use. Thanks for you helps.

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Answered by Jill
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