Adjusting Journal Entries for Current Year Accounts Receivable
Lesson:
Sometimes auditors find mistakes that need to be corrected, either because of fraud or mistakes by the original accounting team.
When revenue is underreported:
- Debit accounts receivable
- Credit revenue
- Debit revenue
- Credit accounts receivable
You're an accountant trying to implement the recommendations made by an external auditor.
Here's what you know:
- The error occurred in the current year's records.
- An auditor reported that the accounts receivable account had been over reported by $39.00.
What journal entry or journal entries should be made?
Answer:
-
Revenue $39.00 Accounts receivable $39.00