A routine collection on a customer's account was recorded and posted as a debit to Cash and a credit to Sales Revenue.The journal entry to correct this error would be
A) a debit to Sales Revenue and a credit to Accounts Receivable.
B) a debit to Sales Revenue and a credit to Unearned Revenue.
C) a debit to Cash and a credit to Accounts Receivable.
D) a debit to Accounts Receivable and a credit to Sales Revenue.

Question

Quizplus · Accepted Answer

The correct entry is to debit Sales Revenue and credit Accounts Receivable. This is because the original entry was incorrect, as it debited Cash instead of Accounts Receivable. The correcting entry reverses the original entry and records the correct transaction.

A Routine Collection on a Customer's Account Was Recorded and Posted