Merriweather Post Pavillion Received a $820 Check from a Customer

question 13

Multiple Choice

Merriweather Post Pavillion received a $820 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash $280 and a credit to Service Revenue $280. The correcting entry is

• A) debit Cash, $820; credit Accounts Receivable, $820.
• B) debit Cash, $540 and Accounts Receivable, $280; credit Service Revenue, $820.
• C) debit Cash, $540 and Service Revenue, $280; credit Accounts Receivable, $820.
• D) debit Accounts Receivable, $820; credit Cash, $540 and Service Revenue, $280.

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Definitions:

East Australian Current

A warm ocean current that flows from the tropical Coral Sea, southward along the eastern coast of Australia.

Precipitation

Any form of water - liquid or solid - falling from the atmosphere to the Earth's surface, including rain, snow, and hail.

Rain Forests

Tropical forests characterized by high rainfall, with annual rainfall between 1750 and 2000 mm.

Sea Surface Temperatures

The temperature of the surface layer of the ocean, a key factor affecting climate and weather patterns globally.