An accountant has debited an asset account for $1400 and credited a liability account for $500. What can be done to complete the recording of the transaction?
A) Nothing further must be done.
B) Debit an owner's equity account for $900.
C) Debit another asset account for $900.
D) Credit a different asset account for $900.

Question

Quizplus · Accepted Answer

To balance the transaction, a credit of $900 is needed. Crediting a different asset account for $900 will balance the debits and credits.

An Accountant Has Debited an Asset Account for $1400 and Credited