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16 March, 20:46

Which of the following is the correct adjusting entry for the account holder when the bank submits a debit memorandum for a monthly service charge of $30? a) Loss on Bank Transactions 30Cash 30b) Miscellaneous Expense 30Cash 30c) Cash 30Account Revenues 30d) Cash 30Bank Service Fee 30

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  1. 16 March, 22:44
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    b) Miscellaneous Expense 30 Cash 30

    Explanation:

    As we have to record the adjusting entry for a monthly service of $30

    So the adjusting entry is

    Miscellaneous Expense $30

    To Cash $30

    (Being the monthly service charges is recorded)

    Since there is a monthly service charges so the miscellaneous expense is debited and the cash is credited since it reduces the cash amount
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