An incorrect debit to Accounts Receivable instead of the correct account Notes Receivable does not require a correcting entry because total assets will not be misstated.

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An incorrect debit to Accounts Receivable instead of Notes Receivable will result in an overstatement of Accounts Receivable and an understatement of Notes Receivable, leading to an overall misstatement of total assets. Thus, a correcting entry is required to rectify the error.

An Incorrect Debit to Accounts Receivable Instead of the Correct