For each of the following errors, considered individually, indicate whether the error would cause the trial balance
Question:
a. The payment of cash for the purchase of office equipment of $8,000 was debited to Land for $8,000 and credited to Cash for $8,000.
b. The payment of $6,750 on account was debited to Accounts Payable for $675 and credited to Cash for $6,750.
c. The receipt of cash on account of $4,150 was recorded as a debit to Cash for $4,510 and a credit to Accounts Receivable for $4,150.
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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