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hi everyone lets talk very quickly about nsf checks so this is all about nsf checks and nsf stands for not sufficient funds okay so whats happening here is a customer sent us a check were the company companies customer sent the company a check and the company deposited the check and then the company that sent us the check did not have enough money to pay the check so it looks like this so um we lets say that we make a sale lets start with the very beginning um company a sells services to um lets say to joe all right keep it easy all right so on account all right so lets say its a hundred dollars okay so company a debits accounts receivable which were going to call ar hundred dollars and then they credit service revenue for a hundred dollars all right thats the journal entry so thats thats where the whole thing gets started right they make a sale on account they get an accounts receivable now joe sends a check okay great so this is transaction one number two joe sends a chec