The Bookkeeper Recorded a Payment on Account as $120 Instead

question 5

Multiple Choice

The bookkeeper recorded a payment on account as $120 instead of the correct amount of $210.What journal entry is required?

• A)Debit Accounts Payable for $210 and credit Cash for $210.
• B)Debit Accounts Receivable for $210 and credit Cash for $210.
• C)Debit Accounts Payable for $90 and credit Cash for $90.
• D)Debit Cash for $90 and credit Accounts Payable for $90.

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Definitions:

Inbound Telemarketing

A marketing technique where potential customers call the company to inquire about products or services, often in response to advertising.

Toll-free Telephone Numbers

Special phone numbers that do not charge the caller, often used by businesses to encourage customer contact.

Purchases

The action of buying goods or services, often considered in terms of frequency, volume, and the decision-making process involved.

Missionary Salesperson

A salesperson who promotes a product indirectly, often focusing on educating potential customers rather than directly closing sales.