Which of the following needs to occur when a check is returned from the bank for NSF?
Understand the Problem
The image contains three multiple-choice questions related to medical billing and office procedures. The first question asks about the actions required when a check is returned for Non-Sufficient Funds (NSF). The second questions asks about who is authorized to sign checks. The third question asks about accounts payable in the provider's office.
Answer
The payment posted to the patient account must be reversed and a charge line item must be added with the amount of the NSF check.
The correct answer is 'The payment posted to the patient account must be reversed and a charge line item must be added with the amount of the NSF check.'
Answer for screen readers
The correct answer is 'The payment posted to the patient account must be reversed and a charge line item must be added with the amount of the NSF check.'
More Information
When a check is returned for NSF (non-sufficient funds), the original payment needs to be reversed since the funds were not successfully transferred. Additionally, a charge line item is often added to cover any fees associated with the returned check.
Tips
A common mistake is only reversing the payment but forgetting to account for the NSF fee, or vice versa. Remember to address both aspects for accurate record-keeping.
Sources
- What Happens to My Check When It Is Returned for Non-Sufficient Funds? - usbank.com
- Journal Entry for Bounced, Returned, NSF Check - Easy Guide - sadaccountant.com
- Handle Non-Sufficient Funds (NSF) or Bounced Check From Customers - quickbooks.intuit.com
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