$22,160 $25,360 Which of the following statements is NOT correct?
Multiple Choice
If goods are purchased on credit, the supplier’s invoice number is used as the source document for the transaction. The description of a journal entry should include a reference to the source of the information contained in the entry. The credit portion of a general journal entry is always recorded first.
A firm should be able to trace amounts through the accounting records and back to their source documents. Bertrand Inc. performed services for clients in the amount of $1,350 on credit. If this transaction had been posted in error to the Cash account instead of the Accounts Receivable account, what correcting entry would be necessary?
Multiple Choice
Debit Accounts Receivable $1,350; credit Cash $1,350