Topeka bike company received a 940 check from a customer, Ask an Expert

Accounting

Topeka Bike Company received a $940 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash $490 and a credit to Service Revenue $490. The correcting entry is:

1. debit Cash, $940; credit Accounts Receivable, $940.

2. debit Accounts Receivable, $940; credit Cash, $450 and Service Revenue, $490.

3. debit Cash, $450 and Service Revenue, $490; credit Accounts Receivable, $940.

4. debit Cash, $450 and Accounts Receivable, $490; credit Service Revenue, $940.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9443748

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