The bookkeeper recorded a payment on account as $120 instead of the correct amount of $210.What journal entry is required?
A)Debit Accounts Payable for $210 and credit Cash for $210.
B)Debit Accounts Receivable for $210 and credit Cash for $210.
C)Debit Accounts Payable for $90 and credit Cash for $90.
D)Debit Cash for $90 and credit Accounts Payable for $90.

Question

Quizplus · Accepted Answer

The bookkeeper needs to correct the error by debiting Accounts Payable and crediting Cash for the $90 difference between the recorded amount ($120) and the correct amount ($210).

The Bookkeeper Recorded a Payment on Account as $120 Instead