A $500 payment for Wages Expense was incorrectly journalized and posted as a debit to Rent Expense for $500 and a credit to Cash for $500. The correcting entry, using the one-step method, would include a
A) debit to Cash for $500.
B) credit to Rent Expense for $500.
C) credit to Supplies Expense for $500.
D) credit to Cash for $500.

Question

Quizplus · Accepted Answer

To correct the journal entry, the Rent Expense account needs to be debited for the $500 that was incorrectly credited to Cash. The correct entry would be a debit to Rent Expense for $500 and a credit to Wages Expense for $500. Since the question asks for the correcting entry using the one-step method, we can combine these two entries into one, resulting in a credit to Rent Expense for $500. None of the other accounts listed (Cash, Supplies Expense) are relevant to this correction.

A $500 Payment for Wages Expense Was Incorrectly Journalized and Posted