Merriweather Post Pavillion Received a $820 Check from a Customer

question 136

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.

---

Definitions:

International Trade Agreements

Legal accords between countries that dictate the terms and conditions of trade between them.

Counterfeit

Goods that are made or sold under another's brand name without the brand owner's authorization.

General Partnership

A business owned by two or more people who have made a decision to comanage and share in the profits and losses.

Liable

Being legally responsible for something, typically involving financial compensation or obligations.