The bookkeeper recorded a payment on account as $170 instead of the correct amount of $710. What journal entry is required?
A)Debit Accounts Payable for $710 and credit Cash for $710.
B)Debit Accounts Receivable for $710 and credit Cash for $710.
C)Debit Accounts Payable for $540 and credit Cash for $540.
D)Debit Cash for $540 and credit Accounts Payable for $540.

Question

Quizplus · Accepted Answer

The error was recording $170 instead of $710, a difference of $540. To correct this, debit Accounts Payable and credit Cash by $540.

The Bookkeeper Recorded a Payment on Account as $170 Instead