16. What entry is required in the depositor's accounts to record outstanding checks? a. None b. debit Cash; credit Accounts Receivable c. debit Cash; credit Accounts Payable d. debit Accounts Receivable; credit Cash 17. The type of account and normal balance of Petty Cash is a(n): a. revenue, credit b. asset, debit c. liability, credit d. expense, debit 18. The debit recorded in the journal to establish the Petty Cash account is to: a. Cash b. Petty Cash c. Accounts Receivable d. Accounts Payable 19. Merchandise inventory at the end of the year was inadvertently overstated. Which of the following statements correctly states the effect of the error? a. net income is understated b. net income is overstated c. cost of merchandise sold is overstated d. gross profit is understated