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The accountant for Wade Inc. prepared the bank reconciliation when the December 31 bank statement was received in the mail. The accountant discovered an error when preparing the reconciliation. A check received from Susan Akins, a customer, as payment on her account in the amount of $120 was recorded in the company's books at $210. How would the company record the required adjusting entry for this item?
Debit Cash for $90 and credit Accounts Payable - Susan Akins for $90.
Debit Cash for $90 and credit Accounts Receivable - Susan Akins for $90.
Debit Accounts Payable - Susan Akins for $90 and credit Cash for $90.
Debit Accounts Receivable - Susan Akins for $90 and credit Cash for $90.
Debit Cash for $210, debit Accounts Receivable - Susan Akins for $120, and credit NSF Check Expense for $90.
question this data relates to the cash account in the ledger of hawkins company.balance september 1-16400 cash
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