An accountant has debited an asset account for $3,000 and credited a revenue account for $6,000.What can be done to complete the recording of the transaction?
A)Nothing further can be done.
B)Credit a shareholders' equity account for $3,000.
C)Debit another asset account for $3,000.
D)Credit another asset account for $3,000.

Question

Quizplus · Accepted Answer

The transaction debited an asset account and credited a revenue account, indicating that the company received an asset (increasing it by $3,000) and earned revenue (increasing it by $6,000). Since there is a discrepancy between the amounts debited and credited, another account needs to be debited or credited to balance the transaction. The best choice is to debit another asset account for $3,000 to account for the full amount of the asset received. Therefore, option C is the correct answer.

An Accountant Has Debited an Asset Account for $3,000 and Credited