A company recorded a cash payment incorrectly.They debited Accounts Receivable for $1,000 and credited Cash for $1,000.The correct entry would debit Accounts Payable for $1,000 and credit Cash for $1,000.Is the trial balance out of balance?

Question

Quizplus · Accepted Answer

The incorrect entry debits Accounts Receivable and credits Cash, while the correct entry debits Accounts Payable and credits Cash. Both entries have the same effect on the trial balance, so the trial balance will not be out of balance.

A Company Recorded a Cash Payment Incorrectly