Post Utme Wellspring University 2023 Accounting Question 40

Practice objective / multiple choice question 40 from the 2023 Post Utme Wellspring University Accounting examination.

Post Utme Wellspring University 2023 Accounting Objective / Multiple Choice
Question 40 POST_UTME_WELLSPRING_UNIVERSITY • 2023 • ACCOUNTING • objective

A government agency prepares a trial balance as of December 31, 2022. The trial balance shows a debit balance of ₦50,000 in the account 'Allowance for Doubtful Accounts'. However, the agency's accountant believes that the correct balance should be a credit balance of ₦20,000. What is the correct journal entry to correct the error?

Answer Options

A. Debit Allowance for Doubtful Accounts ₦50,000; Credit Allowance for Doubtful Accounts ₦30,000
Correct Answer B. Debit Allowance for Doubtful Accounts ₦20,000; Credit Allowance for Doubtful Accounts ₦50,000
C. Debit Allowance for Doubtful Accounts ₦30,000; Credit Allowance for Doubtful Accounts ₦20,000
D. Debit Allowance for Doubtful Accounts ₦50,000; Credit Allowance for Doubtful Accounts ₦20,000
Correct Answer
B
Correct Option:
Debit Allowance for Doubtful Accounts ₦20,000; Credit Allowance for Doubtful Accounts ₦50,000

About This Question

This is Post Utme Wellspring University 2023 Accounting Question 40. It is one of the objective questions from the 2023 Post Utme Wellspring University Accounting examination.

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