During May a Check Written by Pacifica Company for $167

question 4

Multiple Choice

During May a check written by Pacifica Company for $167 for the purchase of supplies was incorrectly recorded by Pacifica for $176.The check was properly processed by the bank for $167.Use the following tabular analysis to determine the impact of the adjusting entry on Pacifica's accounts:

• A)Increase Cash $9 and decrease Supplies $9.
• B)Decrease Cash $9 and increase Supplies Expense $9.
• C)Decrease Supplies $9 and decrease Accounts Payable $9.
• D)No adusting entry is needed by Pacifica as this is a bank error.

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Definitions:

Price of Rice

The cost at which rice is sold, influenced by factors such as supply, demand, quality, and market conditions.

Demand Shift

A change in consumer desire that moves the demand curve to the right (increase) or left (decrease) in a market.

Negative Profits

A financial condition also known as losses, occurring when a company's expenses exceed its revenues.

Profit-Maximizing

The strategic process used by businesses to determine the price and output level that generates the most profit.