Question

In: Accounting

pixel copies recorded a cash collection on account by debiting cash and crediting accounts payable. what...

pixel copies recorded a cash collection on account by debiting cash and crediting accounts payable. what will the trial balance show for this error?
A. cash is overstated
B. The trial balance will not balance
c. Expenses are overstated
d. Liabilities are overstated

Solutions

Expert Solution

Correct Entry for recorded a cash collection on account is :-

debiting cash and crediting accounts Receivable

But Entry recorded incorrectly :-

debiting cash and crediting accounts payable

Account payable is liability which is wrongly credited instead of account receivable'

Hence Liabilities are overstated

Option D is correct

ekkarill92 answered 2 years ago
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