Moreno Inc.reviews its December 31, 2010 unadjusted trial balance and determines that a sale in the amount of $15,000 had been incorrectly recorded as a debit to sales and a credit to receivables.The adjusting entry at December 31, 2010 is:

Question

Quizplus · Accepted Answer

The original incorrect entry was a debit to sales and a credit to receivables for $15,000. To correct this, you need to reverse the incorrect entry by crediting sales and debiting receivables for $15,000, and then record the correct entry by debiting sales and crediting receivables for $15,000. This results in a total adjustment of $30,000 for both accounts.