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How to solve Han's Supplies's bank statement contained a $ 3 8 0 NSF check that one of its customers had written to pay for
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Han's Supplies's bank statement contained a $ NSF check that one of its customers had written to pay for supplies purchased.
Required:
a 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
b Suppose the customer redeems the check by giving Han $ cash in exchange for the bad check. The additional $ paid a service fee charged by Han. Show the effects on the financial statements.
c Is the recognition of the NSF check on Han's books an asset source, use, or exchange transaction?
d Select which of the following is the correct answer.
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