A firm purchased telephone equipment for cash. By mistake, the person who recorded the transaction debited Utilities Expense instead of Office Equipment. The error was discovered after the data was posted. The correcting entry should contain

Question

Quizplus · Accepted Answer

The correcting entry should reverse the incorrect entry and record the correct one. Therefore, debit Office Equipment to record the asset and credit Utilities Expense to reverse the incorrect expense entry.

A Firm Purchased Telephone Equipment for Cash