Flynn Company's monthly bank statement showed the ending balance of cash of $18,500. The bank reconciliation for the period showed an adjustment for a deposit in transit of $1,500, outstanding checks of $2,000, a NSF check of $700, bank service charges of $30 and the EFT from a customer in payment of the customer's account of $1,500.

4. Use the information above to answer the following question. What journal entry should be recorded by Flynn Company for the NSF check returned? A) Accounts receivable 700 Cash 700 B) Cash 700 Accounts receivable 700 C) Cash 700 Accounts payable 700 D) No journal entry is necessary A. Option A B. Option B C. Option C D. Option D