A Cash Payment of $130 on Account Was Recorded as a $310

question 82

Multiple Choice

A cash payment of $130 on account was recorded as a $310 debit to Accounts Payable and a $310 credit to Cash. The necessary correcting entry is

• A) debit Cash, $180; credit Accounts Receivable, $180.
• B) debit Accounts Payable, $180; credit Cash, $180.
• C) debit Cash, $180; credit Accounts Payable, $180.
• D) debit Accounts Receivable, $180; credit Cash, $180.
• E) debit Cash $130, credit Accounts Payable, $130.

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Definitions:

Population Parameter

A numerical value that describes a characteristic of an entire population.

Sample Statistic

A sample characteristic, such as a sample mean x, a sample standard deviation s, a sample proportion p, and so on. The value of the sample statistic is used to estimate the value of the corresponding population parameter.

Simple Random Sample

A segment of a statistical population where every individual in the segment is equally likely to be selected.

Infinite Population

A population size that is so large it is considered limitless for practical statistical purposes, often used in theoretical models.