Prepare the necessary correcting entry for each of the following. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) A payment on account of $840 was debited to Accounts Payable $480 and credited to Cash $480. b. The collection of Accounts Receivable of $680 was recorded as a debit to Cash $680 and a credit to Service Revenue $680. No. Account Titles and Explanation. a. b. Debit Credit