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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