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A Receipt of $300 Cash on Account Was Recorded as a $500

Question 69

Multiple Choice

A receipt of $300 cash on account was recorded as a $500 debit to Accounts payable and a $500 credit to Cash. Which of the following conditions will exist?


A) Cash is overstated by $500.
B) Cash is overstated by $800.
C) Cash is understated by $800.
D) Cash is understated by $500.

Correct Answer:

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