An $800 cheque written for supplies was journalized as $80. The entry to correct this error is
A) debit Supplies, $720; credit Cash, $720.
B) debit Cash, $720; credit Supplies, $720.
C) debit Supplies, $80; credit Cash, $80.
D) debit Cash, $80; credit Cash, $80.

Question

Quizplus · Accepted Answer

The cheque was originally recorded as $80 instead of $800, so the difference of $720 needs to be corrected by debiting Supplies and crediting Cash for $720.

An $800 Cheque Written for Supplies Was Journalized as $80