David Journalized and Posted an Entry for $2,000 Debit to Cash;

question 67

Multiple Choice

David journalized and posted an entry for $2,000 debit to Cash; and $2,000 credit to Service Fees. The correct amount on the billing was $200. The entry to correct this error is

• A) debit Cash, $1,800; credit Service Fees, $1,800.
• B) debit Service Fees, $1,800; credit Cash, $1,800.
• C) debit Service Fees, $2,800; credit Cash, $2,000.
• D) debit Service Fees, $200; credit Cash, $200.

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Definitions:

Soviet Model

An economic and political system found in the former Soviet Union, characterized by state ownership of resources, central planning, and one-party rule.

Karl Marx

A 19th-century philosopher, economist, and socialist who analyzed the effects of capitalism and proposed a revolutionary class struggle leading to a society with no class distinctions.

Public Ownership

Ownership of assets by the government or a government entity, rather than by private individuals or organizations.

Laissez-faire

An economic system in which transactions between private parties are free from state intervention, including restrictive regulations, taxes, and tariffs.