The bookkeeper of Fire Steel Inc.recorded a $1,524 check as $15,240 in payment of the current month's rent.Which of the following journal entries is needed to adjust for this error in the books of the company?

Question

Quizplus · Accepted Answer

The entry required to adjust for this error is to debit Rent Expense for $13,716 ($15,240 - $1,524) and credit Cash for $15,240. Option C shows the correct accounts and amounts for the adjusting entry. Option A shows incorrect accounts, Option B has incorrect amounts, and Option D shows correct accounts but incorrect amounts.

The Bookkeeper of Fire Steel Inc