If cash was incorrectly debited for $100 instead of correctly crediting it for $100, the cash account's balance will be overstated (too high).

Question

Quizplus · Accepted Answer

If cash was incorrectly debited for $100 instead of correctly crediting it for $100, it means that $100 was added to the cash account, resulting in an increase in the account balance. However, since the correct entry should have been a credit for $100, the overstated balance is incorrect and needs to be adjusted by reversing the incorrect entry and making the correct entry.

If Cash Was Incorrectly Debited for $100 Instead of Correctly