Question

quick copies recorded a cash collection on account by debiting cash and crediting accounts payable. what will the trial balance show for this error?

Answer 1

If Quick Copies recorded a cash collection on account by debiting Cash and crediting Accounts Payable, the trial balance will show an overstated balance for Accounts Payable and an understated balance for Cash.

Step-by-step explanation:

When recording a cash collection on account, the correct journal entry would be to debit Accounts Receivable (not Accounts Payable) and credit Cash.

If Quick Copies recorded the cash collection incorrectly by debiting Cash and crediting Accounts Payable, this would result in an error on the trial balance. The trial balance would show an overstated balance for Accounts Payable and an understated balance for Cash.

To correct this error, Quick Copies should make an adjusting entry to debit Accounts Receivable and credit Accounts Payable.