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Quick Co Owed Lars Co

Question 21

Multiple Choice

Quick Co. owed Lars Co. $15,000. Quick's accountant misread the amount owed and wrote a check to Lars for $18,000. If a balance sheet is prepared immediately after this payment, Quick will show a


A) credit-balanced Account Payable to Lars Co.
B) debit-balanced Account Payable to Lars Co.
C) contra-liability account to Lars Co.
D) debit-balanced Account Receivable from Lars Co.
E) debit-balanced deferred expense from Lars Co.

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