The Documentation with the Bank Statement Shows a Debit Memo

The documentation with the bank statement shows a debit memo for bank service charges. Identify the effects of the transaction on the company's accounts.

A) Increase Miscellaneous Administrative Expense; Decrease Cash
B) Increase Cash; increase Other Income
C) Increase Cash; increase Accounts Payable
D) Decrease Accounts Payable; Decrease Cash

Correct Answer:

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