Question

In: Accounting

Bertrand Inc. performed services for clients in the amount of $1,450 on credit. If this transaction...

Bertrand Inc. performed services for clients in the amount of $1,450 on credit. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary?

Multiple Choice:

  • 1. Debit Accounts Receivable $1,450; credit Fees Income $1,450

  • 2. Debit Accounts Receivable $1,450; credit Cash $1,450

  • 3. Debit Fees Income $1,450; credit Cash $1,450

  • 4. Debit Cash $1,450; credit Accounts Receivable $1,450

Solutions

Expert Solution

Solution:

Correcting entry would be:

Debit Accounts Receivable..............$1,450

Credit Cash............................................................$1,450

Hence option "2" is correct.


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