Question

If a fee of $2,850 earned from a client was debited to Accounts Receivable for $2,580 and credited to Fees Earned for $2,850, which of the following statements would be true?(A) The credit total of the trial balance would be higher by $270.(B) The debit total of the trial balance would be higher by $270.(C) The wrong account is credited(D) the trial balance total would be equal

Answer 1

Answer:

Explanation:

given data

fee = $2850

receive = $2580

credit fees = $2850

to find out

which statement true

solution

we know here that fee earn by client is here  $2850

and        

$2580 receive as debit account  so

$2850 fee earn credit

so we can say here

credit balance will be high ( 2850 - 2580)

higher = 270

so option A is correct          

so here the credit account total of trial balance would be high by $270