Indicate whether the following error would cause the adjusted trial balance totals to be unequal. If the error would cause the adjusted trial balance totals to be unequal, indicate whether the debit or credit totals is higher and by how much. The adjustment for accrued fees of $1,170 was journalized as a debit to Accounts Receivable for $1,170 and a credit to Fees Earned for $1,107.

Question

Business

Davis Hahn

14 October, 10:45

Indicate whether the following error would cause the adjusted trial balance totals to be unequal. If the error would cause the adjusted trial balance totals to be unequal, indicate whether the debit or credit totals is higher and by how much. The adjustment for accrued fees of $1,170 was journalized as a debit to Accounts Receivable for $1,170 and a credit to Fees Earned for $1,107.

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Answers (1)

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Kash Lamb · Answer 1

Debit total is $63 higher

Explanation:

Since in the given transaction, the total amounts are not equal as they have the wrong amount in account receivable and the fees earned.

As we can see that

Debit to Account receivable = $1,170

Credit to Fees earned = $1,107

The debit total amount is more than by the credit total amount for $63 after deducting it $1,107 from $1,170