Ask Question
9 July, 05:15

An accountant has debited an asset account for $1,200 and credited a liability account for $500. What can be done to complete the recording of the transaction?

+3
Answers (1)
  1. 9 July, 05:22
    0
    It will certainly need to record a credit for 700

    That could be an asset accounts (1)

    or revenue accounts (2)

    Explanation:

    There are many ways to do it:

    (1)

    it could credit another asset.

    Invenotry 1200

    Account payable 500

    Cash 700

    the company purchase inventory (asset) It pay 700 right away and the rest later

    (2)

    It could credit a revenue account

    cash 1,200

    unarned revenue 500

    sales revenue 700

    The company receive cash for a customer, but only a partial amount of the job is done, so one part is earned (revenue) adn another one is not (unearned revenue)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “An accountant has debited an asset account for $1,200 and credited a liability account for $500. What can be done to complete the recording ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers