MC Qu. 132 A $72,000 receipt of cash from a customer pa... A $72,000 receipt of

Question

MC Qu. 132 A $72,000 receipt of cash from a customer pa... A $72,000 receipt of cash from a customer paying on their account was recorded as a $72,000 debit to Accounts Receivable. Assuming this journal entry was posted, what correcting entry (if any) is needed A.Debit Cash and Credit Accounts Receivable for $72,000 each B.Debit Cash and Credit Accounts Receivable for $144,000 each C.Credit Cash and Debit Accounts Receivable for $72,000 each D.Credit Cash and Debit Accounts Receivable for $144,000 each E.No correcting entry is needed for this transaction

Explanation / Answer

Correct entry should be ddmmyy Cash Dr 72000 Acct Rxable Cr 72000 While entry made was ddmmyy Acct Rxable Dr 72000 Cash Cr 72000 So corrcting entry will be B.Debit Cash and Credit Accounts Receivable for $144,000 each ddmmyy Cash Dr 144,000 Acct Rxable Cr 144,000

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