An accountant has debited an asset account for $500 and credited a revenue account for $1,000. What can be done to complete the recording of the transaction?

Question

Quizplus · Accepted Answer

Since the asset account was debited for $500 and the revenue account was credited for $1,000, there is an imbalance in the accounting equation. To balance it, another asset account must be debited for $500. Therefore, choice B is the correct answer.

An Accountant Has Debited an Asset Account for $500 and Credited