Concept:This treatment reverses the earlier bank entry made when the cheque was first received.
Explanation:A dishonored cheque means the bank refused to pay the amount to us.
When the cheque was initially received, the bank account was debited and the customer's account was credited.
Now that it is dishonored, we must reverse these entries.
Therefore, we debit the customer's account and credit the bank account.
This restores the amount owed by the customer.
Answer:Option A: debit customer's account; credit bank account.