susan discovered that a sale on account to michelle company on february 12 for $800 was incorrectly charged…

susan discovered that a sale on account to michelle company on february 12 for $800 was incorrectly charged to the account of michael company. the journal entry to correct this error is: o a. debit accounts payable/michael company, $800; credit accounts payable/michelle company, $800. o b. debit accounts receivable/michael company, $800; credit accounts receivable/michelle company, $800. o c. debit accounts receivable/michelle company, $800; credit accounts receivable/michael company, $800. o d. debit accounts payable/michelle company, $800; credit accounts payable/michael company, $800.

susan discovered that a sale on account to michelle company on february 12 for $800 was incorrectly charged to the account of michael company. the journal entry to correct this error is: o a. debit accounts payable/michael company, $800; credit accounts payable/michelle company, $800. o b. debit accounts receivable/michael company, $800; credit accounts receivable/michelle company, $800. o c. debit accounts receivable/michelle company, $800; credit accounts receivable/michael company, $800. o d. debit accounts payable/michelle company, $800; credit accounts payable/michael company, $800.

Answer

Answer:

C. debit Accounts Receivable/Michelle Company, $800; credit Accounts Receivable/Michael Company, $800.

Explanation:

Step1: Identify the nature of the error

It's a sales - on - account error.

Step2: Recall accounting for sales on account

Sales on account affect accounts receivable.

Step3: Determine the correct entry

To correct, debit the correct receivable (Michelle) and credit the incorrect one (Michael).