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

Question

Business

Kyla

12 August, 16:56

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

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Answers (1)

Know the Answer?

Maxim Barton · Answer 1

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