Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 28 - No. 2)
Which of the following is the correct journal entry to correct an error where a sale of goods for $800 was incorrectly recorded as a sale of $80?
Debit Sales $720; Credit Cash $720
Debit Cash $720; Credit Sales $720
Debit Cash $800; Credit Sales $800
Debit Sales $80; Credit Cash $80
Explanation
The correct entry is Debit Cash $720, Credit Sales $720. This entry adjusts the cash and sales revenue accounts to reflect the correct amount of the sale. Cash was understated and Sales also need to be adjusted.
Comments (0)
