Question

Pixel Copies recorded a cash collection on account by debiting Cash and crediting Accounts Payable. What will the trial balance show for this​ error?

Answer 1

Answer:

Overstatement of Assets and liabilities.

Explanation:

Collection of cash results in journal entry of debiting cash with corresponding credit to accounts receivable thus reducing the accounts receivable.

Erroneous credit to accounts payable instead of accounts receivable results in overstatement of assets and liabilities.