Crimmins Boats paid a $350 cheque to a supplier for the balance due on an account payable. The transaction was erroneously recorded as a credit to cash of $530 and a debit to Repairs Expense of $530. The correcting entry is

Question

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The correct entry needs to reverse the incorrect $530 debit to Repairs Expense and the incorrect $530 credit to Cash, then correctly record the $350 payment to the supplier. This involves debiting Cash for the difference ($180) to correct the cash balance, debiting Accounts Payable for $350 to reflect the payment to the supplier, and crediting Repairs Expense for $530 to reverse the incorrect expense recording.

Crimmins Boats Paid a $350 Cheque to a Supplier for the Balance