The accountant for Stella Inc.prepared the bank reconciliation when the May 31 bank statement was received in the mail.The accountant discovered an error when preparing the reconciliation.A check issued to Remington Industries as payment on account in the amount of $340 was recorded in the company's books at $430.How would the company record the required adjusting entry for this item?
A) Debit Cash for $90 and credit Accounts Payable- Remington Industries for $90.
B) Debit Cash for $90 and credit Accounts Receivable - Remington Industries for $90.
C) Debit Accounts Payable - Remington Industries for $90 and credit Cash for $90.
D) Debit Accounts Receivable - Remington Industries for $90 and credit Cash for $90.
E) Debit Cash for $430,debit Accounts Payable- Remington Industries for $340,and credit Miscellaneous Expense for $90.
Correct Answer:
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