1. Two students are discussing the use of atrial balance. They wonder whether the following errors, each considered separately, would prevent thetrial balancefrom balancing. If thetrial balancedidbalance, does this mean the transactions were entered correctly? What would you tell them?The bookkeeper debited Accounts Receivable for $900 and credited Cash for $900 for receipt of monies from sales made on account, previously recorded.
2. Cash collected on account was debited to Cash for $900, and Service Revenue was credited for $90.

This question is from the book called financial accoutning: reporting, analysis and decision making.

Chapter 2: Q10 (p. 130).