Receipts from cash sales of $7,500 were recorded incorrectly in the cash receipts journal as $5,700. What entry is required in the company's accounts?

Question

Quizplus · Accepted Answer

The correct entry required in the company's accounts would be to debit Cash (to increase it by $7,500 - $5,700 = $1,800) and credit Sales (to reflect the correct amount of sales revenue earned from the cash sales). Therefore, the correct choice is option C. The other options are incorrect because they do not address the incorrect recording of cash receipts from sales. Option A implies that sales were correctly recorded, but cash was not. Option B implies that the company has received payments on account, which is not mentioned in the problem. Option D implies that the company has not yet received cash for the sales, which is also not the case in the problem.

Receipts from Cash Sales of $7,500 Were Recorded Incorrectly in the Cash