A company recorded a cash payment incorrectly. Accounts Receivable was debited for $900 and Cash was credited for $900. The correct entry would debit Accounts Payable for $900 and credit Cash for $900. Is the trial balance out of balance?

Question

Quizplus · Accepted Answer

The trial balance is not out of balance because the total debits equal the total credits in both the incorrect and correct entries.

A Company Recorded a Cash Payment Incorrectly