When preparing the monthly bank reconciliation,the accountant for Teddy Trucks discovered that a cheque correctly written to one of Teddy's suppliers for $159 had been incorrectly recorded in the books as $195.To correct the error,the accountant prepared an adjusting entry which required a debit to which of the following accounts?

Question

Quizplus · Accepted Answer

The error resulted in an overstatement of the cash disbursement by $36 ($195 - $159). To correct this, the accountant needs to increase the cash balance by debiting the Cash account.

When Preparing the Monthly Bank Reconciliation,the Accountant for Teddy Trucks