A bookkeeper has debited an asset account for $3,500 and credited a liability account for $2,000.Which of the following would be an incorrect way to complete the recording of this transaction:

A) Credit another asset account for $1,500.
B) Credit another liability account for $1,500.
C) Credit a revenue account for $1,500.
D) Credit the common stock account for $1,500.
E) Debit another asset account for $1,500.

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jasalyn steward · Accepted Answer

Final Answer : E, Explanation :  The total debits and credits must balance in a transaction. Since the asset account is already debited for $3,500 and a liability account is credited for $2,000, the remaining $1,500 needs to be credited (not debited) to balance the transaction. Debiting another asset account for $1,500 would imbalance the transaction.

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