A bookkeeper has debited an account for $5,300 and credited a liability account for $2,900. Which of the following would be an incorrect way to complete the recording of this transaction:

A. Credit another asset account for $2,400.

B. Credit another liability account for $2,400.

C. Credit an expense account for $2,400.

D. Credit the Common Stock account for $2,400.

E. Debit another asset account for $2,400.

Question

Business

Bullock

21 November, 12:06

A bookkeeper has debited an account for $5,300 and credited a liability account for $2,900. Which of the following would be an incorrect way to complete the recording of this transaction:

A. Credit another asset account for $2,400.

B. Credit another liability account for $2,400.

C. Credit an expense account for $2,400.

D. Credit the Common Stock account for $2,400.

E. Debit another asset account for $2,400.

+1

Answers (1)

Know the Answer?

Lane Chandler · Answer 1

Option E Debit another asset account for $2,400.

Explanation:

The other account which was debited with an excess amount to credit entry is $2400. This requires an adjustment for $2400 with credit entry to balance the credit and debit entry. So the only entry with debit is incorrect here which will not balance the entry and increase the difference between credit and debit.

So the option E is the option here which is will not complete the recording of transaction.