Question

A company deposited a $420 check in its bank account. However, the amount was recorded as $240 in the company’s books (checkbook). Which journal entry adjustment should the accountant make?

A.
The cash account will be debited by $420.
B.
The cash account will be credited by $240.
C.
The cash account will be debited by $180.
D.
The cash account will be credited by $420.

Answer 1

I think the answer is C.

Explanation:

You subtract the difference with the real amount with the mistake and get $180.