A firm purchased telephone equipment for cash. By mistake, the accountant debited Utilities Expense instead of Office Equipment. The error was discovered after the data posted. The correcting entry should contain:

Question

Quizplus · Accepted Answer

The correct entry to correct the mistake involves debiting Office Equipment (to increase its balance and correctly reflect the asset on the books) and crediting Utilities Expense (to decrease its balance, correcting the initial erroneous entry).

A Firm Purchased Telephone Equipment for Cash