Morgan Company used supplies in the amount of $2,000. Due to an error in posting to the general ledger, the supplies account was credited for $2,000 while supplies expense was debited for $200. Which of the following is correct? Multiple Choice O The required adjusting journal entry is classified as a deferral. Morgan's accountant will need to prepare an adjusting entry debiting Cash for $1,800. The other financial statements will be impacted by this error. Since only revenue and expense accounts need adjustments, the accountant should debit supplies expense and credit a revenue account.

Morgan Company used supplies in the amount of $2,000. Due to an error in posting to the general ledger, the supplies account was credited for $2,000 while supplies expense was debited for $200. Which of the following is correct? Multiple Choice O The required adjusting journal entry is classified as a deferral. Morgan's accountant will need to prepare an adjusting entry debiting Cash for $1,800. The other financial statements will be impacted by this error. Since only revenue and expense accounts need adjustments, the accountant should debit supplies expense and credit a revenue account.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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