In which of the following scenarios would you record a bank deposit transaction in the accounting records?

• A. When a customer pays cash for goods and the cash is deposited into the company's bank account
• B. When a company issues a note payable to a lender
• C. When a company writes a check to pay a supplier
• D. When a bank charges a monthly service fee

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of a bank deposit transaction. A bank deposit transaction is recorded when cash is received and deposited into the company's bank account. This typically involves an inflow of cash that increases the company's bank balance.
2. Step 2: Analyze each scenario provided in the problem to determine if it involves a bank deposit transaction. For example, when a customer pays cash for goods and the cash is deposited into the company's bank account, this qualifies as a bank deposit transaction because it involves receiving cash and depositing it.
3. Step 3: Evaluate the other scenarios. When a company issues a note payable to a lender, this is a liability transaction and does not involve depositing cash into the bank. Similarly, when a company writes a check to pay a supplier, this is a cash outflow and does not qualify as a bank deposit transaction.
4. Step 4: Consider the scenario where a bank charges a monthly service fee. This is an expense transaction and involves a deduction from the bank account, not a deposit.
5. Step 5: Conclude that the correct scenario for recording a bank deposit transaction is when a customer pays cash for goods and the cash is deposited into the company's bank account. This is the only scenario that involves an inflow of cash being deposited into the bank.