Forrest Industries has the following information in regard to its Cash account for the month of August.The account had a normal balance of $62,500 on August 1.During August,it had three debit entries totaling $250,000.The balance in the Cash account on August 31 was $112,500.What was the total of the credit entries to the Cash account during the month of August?
A)$50,000
B)$112,500
C)$200,000
D)$300,000

Question

Quizplus · Accepted Answer

The equation for the Cash account,which normally has a debit balance,is as follows.
Ending debit balance = Beginning debit balance + Total debit entries − Total credit entries
Total credit entries = Beginning debit balance + Total debit entries − Ending debit balance
= $62,500 + $250,000 − $112,500 = $200,000

Forrest Industries Has the Following Information in Regard to Its