Asked by
Alexis Lorraine
on Nov 18, 2024Verified
The purchase of supplies on account was recorded and posted as a debit to Supplies for $500 and a credit to Accounts Receivable for $500. The correcting entry would include a:
A) credit to Accounts Receivable for $500
B) credit to Accounts Receivable for $1,000
C) credit to Accounts Payable for $500
D) credit to Accounts Payable for $1,000
Supplies
Items and materials used in the everyday operations of a business, often consumable and requiring regular replenishment.
Accounts Receivable
The amount clients owe a company for goods or services that have been delivered but remain unpaid.
Accounts Payable
Short-term liabilities a company owes to its creditors for goods and services purchased on credit.
- Comprehend how correcting entries impact the balances of accounts.
Verified Answer
AZ
Learning Objectives
- Comprehend how correcting entries impact the balances of accounts.
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