During the month of September, Norris Industries issued a check in the amount of $845 to a supplier on account. The check cleared the bank during September. The disbursement was recorded incorrectly as $854. The journal entry to correct this mistake when discovered will include:

Question

Quizplus · Accepted Answer

The error was an overstatement of $9 ($854 recorded instead of $845). To correct this, a credit to Accounts Payable for $9 is needed to reduce the liability to the correct amount.

During the Month of September, Norris Industries Issued a Check