Bertrand Inc. performed services for clients in the amount of $1,350 on credit. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary?
A)Debit Accounts Receivable $1,350; credit Fees Income $1,350
B)Debit Fees Income $1,350; credit Cash $1,350
C)Debit Accounts Receivable $1,350; credit Cash $1,350
D)Debit Cash $1,350; credit Accounts Receivable $1,350

Question

Quizplus · Accepted Answer

The correct entry to correct the mistake involves debiting Accounts Receivable to increase it (since the service was performed on credit, not paid in cash) and crediting Cash to decrease it, correcting the erroneous posting.