The Bookkeeper Recorded a Payment on Account as $150 Instead

question 11

Multiple Choice

The bookkeeper recorded a payment on account as $150 instead of the correct amount of $510.What journal entry is required?

• A)Debit Accounts Payable for $510 and credit Cash for $510.
• B)Debit Accounts Receivable for $510 and credit Cash for $510.
• C)Debit Accounts Payable for $360 and credit Cash for $360.
• D)Debit Cash for $360 and credit Accounts Payable for $360.

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Definitions:

Equipment Cost

The total expense incurred from acquiring equipment including purchase price, transportation, installation, and any other costs to make the equipment operational.

Double-Declining-Balance Method

An accelerated depreciation technique that depreciates assets faster than traditional straight-line depreciation.

Straight-Line Depreciation

Method that allocates the depreciable cost of an asset in equal periodic amounts over its useful life

Book Value

The net value of a company's assets as found on its balance sheet, calculated by subtracting total liabilities from total assets.