In preparing the April bank reconciliation for Oscar Company,it was discovered that on April 10 a check was written to pay delivery expense of $45 but the check was erroneously recorded as $54 in the company's books.The journal entry required to correct the error is

Question

Quizplus · Accepted Answer

The journal entry required to correct the error is to decrease the expense account Delivery Expense and increase the cash account (since the company paid $45 and not $54). The correct entry would be:

Debit Cash $9
Credit Delivery Expense $9

Therefore, the correct choice is B, which shows a debit to cash for $9 and a credit to delivery expense for $9.

In Preparing the April Bank Reconciliation for Oscar Company,it Was