The bookkeeper recorded a payment on account as $150 instead of the correct amount of $510.What journal entry is required?
A)Debit Accounts Payable for $510 and credit Cash for $510.
B)Debit Accounts Receivable for $510 and credit Cash for $510.
C)Debit Accounts Payable for $360 and credit Cash for $360.
D)Debit Cash for $360 and credit Accounts Payable for $360.

Question

Quizplus · Accepted Answer

The correct amount was $510, but only $150 was recorded. The difference of $360 needs to be corrected. Debiting Accounts Payable increases the liability to reflect the full amount owed, and crediting Cash corrects the payment amount.

The Bookkeeper Recorded a Payment on Account as $150 Instead