Question
A business collected $450 from a customer for an outstanding accounts receivable. By mistake the transaction was recorded as $550 debit to Cash and a
A business collected $450 from a customer for an outstanding accounts receivable. By mistake the transaction was recorded as $550 debit to Cash and a $550 credit to Service revenue. What is the necessary correcting entry?
a. debit $550 to Service Revenue, credit $100 to Cash; credit $450 to Accounts Receivable.
b. Debit $450 to Accounts Receivable; debit $100 to Cash; credit $550 to Service Revenue.
c. debit $450 to Accounts Receivable; credit $450 to Cash.
d. debit $100 to Accounts Receivable; credit $100 to Cash.
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
978-0538453257
