The answer is d. Please explain why, as I thought debits are increased by assets

Question

The answer is d. Please explain why, as I thought debits are increased by assets, which is what account receiveables are, assets. Right?

. A trial balance prepared at year-end shows total credits exceed total debits by $765. This discrepancy could have been caused by a. An error in the general journal where a $765 increase in Accounts Payable was recorded as a $765 decrease in Accounts Payable b. The ledger balance for Accounts Payable of $7,650 being entered in the trial balance as $765. c. A general journal error where a $765 increase in Accounts Receivable was recorded as a $765 increase in Cash. d. The ledger balance of $850 in Accounts Receivable was entered in the trial balance as $85 e. An error in recording a $765 increase in Cash as a credit

Explanation / Answer

It is because By recording $85 in accounts receivable instead of $815 the debits would be lower by $715 than the credits.So, the credit side of trial balance will show a higher balance of $715

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