Exercise 6-7A (Algo) Treatment of NSF check LO 6-3 Han's Supplies's bank statement contained a $270 NSF check that one of its customers had written to pay for supplies purchased. Required a. & c. Show the effects of the following transactions on the financial statements in the horizontal statements model. (a) Recognize the NSF check, (c) Customer redeems the check by giving Hans $290 cash in exchange for the bad check. The additional $20 was a service fee charged by Hans. (Enter any decreases to account balances with a minus sign. For changes on the Statement of Cash Flows, indicate whether the item is an operating activity (OA), investing activity (IA), financing activity (FA), or leave the cell blank if there is no effect.) HAN'S SUPPLIES Horizontal Statements Model Income Statement Balance Sheet Assets Liabilities Accounts Receivable Equity Statement of Cash Flows Event Revenue Expense = Net Income Cash (a) (c) OA IA FA b. Is the recognition of the NSF check on Han's books an asset source, use, or exchange transaction? O Asset source O Asset use O Asset exchange d. Select which of the following is the correct answer. Asset exchange is $290. Asset source is $290. O Asset use is $290. Asset exchange is $270 and Asset source is $20. O Asset source is $270 and Asset use is $20. O Asset exchange is $290 and Asset use is $20