Explain bank declines to pay an item payable

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Reference no: EM13109260

Clearwater Bank agrees to honour Dockside Boatbuilders Inc.'s checks even when its account has inadequate funds. Edna, Dockside's bookkeeper writes the checks. Later, the bank declines to pay an item payable to Fleet Supply Company that would create an overdraft. This is A) a wrongful dishonour.
B) Dockside's liability.
C) Edna's responsibility.
D) Fleet's loss

Reference no: EM13109260

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