ACCA Applied Knowledge · Financial Accounting · Correction of errors
A bookkeeper recorded a cash sale of $700 by debiting cash $700 and crediting receivables control $700. Which journal corrects this?
Debit receivables control $700 and credit sales $700. The cash debit was right, but the credit was posted to the wrong account, so it is reversed out of receivables and recorded as revenue in sales.
- ADr Receivables control $700; Cr Sales $700Correct
- BDr Sales $700; Cr Receivables control $700
- CDr Cash $700; Cr Sales $700
- DDr Receivables control $700; Cr Cash $700
Explanation
The credit should have gone to sales but went to receivables control. Debiting receivables control removes the wrong credit and crediting sales records the revenue. Option C would duplicate the cash debit, which was already correct.
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