Unearned Sales Revenue of P 120,000 was overlooked at the end of 2021. What would be the adjusting entry if the error was discovered at December 31, 2022? Group of answer choices A. Debit - Retained Earnings, P 120,000; Credit - Unearned Sales Revenue, P 120,000. B. Debit - Sales Revenue, P 120,000; Credit - Retained Earnings, P 120,000. C. No adjusting entry is necessary D. Debit - Retained Earnings, P 120,000; Credit - Sales Revenue, P 120,000.
Unearned Sales Revenue of P 120,000 was overlooked at the end of 2021. What would be the adjusting entry if the error was discovered at December 31, 2022? Group of answer choices A. Debit - Retained Earnings, P 120,000; Credit - Unearned Sales Revenue, P 120,000. B. Debit - Sales Revenue, P 120,000; Credit - Retained Earnings, P 120,000. C. No adjusting entry is necessary D. Debit - Retained Earnings, P 120,000; Credit - Sales Revenue, P 120,000.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 8RE: At the end of 2019, Framber Company received 8,000 as a prepayment for renting a building to a...
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Question
Unearned Sales Revenue of P 120,000 was overlooked at the end of 2021. What would be the
Group of answer choices
A. Debit - Retained Earnings , P 120,000; Credit - Unearned Sales Revenue, P 120,000.
B. Debit - Sales Revenue, P 120,000; Credit - Retained Earnings, P 120,000.
C. No adjusting entry is necessary
D. Debit - Retained Earnings, P 120,000; Credit - Sales Revenue, P 120,000.
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