[The following information applies to the questions displayed below.]The bank statement for Tetra Company contained the following items: a bank service charge of $10; a credit memo for interest earned, $15; and a $50 NSF check from a customer. The company had outstanding checks of $100 and a deposit in transit of $300.Which of the following will be caused by the entry to record the customer's NSF check?
A. Cash decreases.
B. Accounts receivable increases and cash decreases.
C. Stockholders' equity decreases.
D. Accounts receivable increases.
Answer: B
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