Egrane, Inc.'s monthly bank statement showed the ending balance of cash of $14,800. The bank reconciliation for the period showed an adjustment for a deposit in transit of $1,200, outstanding checks of $1,600, a NSF check of $560, bank service charges of $24 and the EFT from a customer in payment of the customer's account of $1,200.What journal entry should be recorded by Egrane for the EFT?
A. Debit Cash and credit Accounts Receivable for $1,200.
B. No journal entry is necessary for this item.
C. Debit Accounts Receivable and credit Cash for $1,200.
D. Debit Cash and credit Sales Revenue for $1,200.
Answer: A
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