Hans Suppliess bank statement contained a $370 NSF check that one of its customers had...
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Accounting
Hans Suppliess bank statement contained a $370 NSF check that one of its customers had written to pay for supplies purchased. Required: Show the effects of recognizing the NSF check on the financial statements by recording the appropriate amounts in a horizontal financial statements model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). Suppose the customer redeems the check by giving Han $290 cash in exchange for the bad check. The additional $20 paid a service fee charged by Han. Show the effects on the financial statements. Is the recognition of the NSF check on Hans books an asset source, use, or exchange transaction
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