A company incorrectly recorded a receipt of cash on account. Accounts Receivable was debited for $900 and Cash was credited for $900. Is the trial balance out of balance?
A)No.
B)Yes, by $900.
C)Yes, by $1800.
D)Yes, by $2700.

Question

Quizplus · Accepted Answer

The trial balance is not out of balance because the total debits equal the total credits. The error is that Accounts Receivable should have been credited for $900 and Cash should have been debited for $900.

A Company Incorrectly Recorded a Receipt of Cash on Account