Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 48 - No. 3)
Which of the following entries could cause a posting error if not corrected?
Recording a $500 receipt of cash from a customer as a debit to cash and a credit to sales revenue.
Recording a $300 purchase of inventory on credit as a debit to inventory and a credit to accounts payable.
Recording a $100 payment for utilities as a debit to utilities expense and a credit to cash.
Recording a $200 withdrawal of cash by the owner as a debit to drawings and a credit to cash.
Explanation
All these options are valid accounting entries but would require a correction to resolve the error. The error will be resolved when the correct entry is made.
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