A $1,500 payment for Rent Expense was incorrectly journalized and posted as a debit to Rent Expense for $5,100 and a credit to Cash for $5,100. The correcting entry, using the one-step method, would include a
A) debit to Cash for $1,500.
B) credit to Rent Expense for $3,600.
C) credit to Rent Expense for $5,100.
D) credit to Cash for $1,500.

Question

Quizplus · Accepted Answer

To correct the error, we need to reverse the incorrect entry by debiting Cash for $1,500 (the actual amount paid for rent) and crediting Rent Expense for $3,600 (the difference between the incorrect amount and the actual amount of rent expense). Therefore, the correcting entry would be a credit to Rent Expense for $3,600 and a debit to Cash for $1,500, using the one-step method. Choice B correctly reflects these account amounts.

A $1,500 Payment for Rent Expense Was Incorrectly Journalized and Posted