Question

An adjustment to record unrecorded fees earned was posted during the current period. Which of the following would cause the adjusted trial balance totals to be unequal? a.The adjustment was posted as a debit to Fees Earned and a credit to Accounts Receivable. b.The adjustment was posted as a debit to Accounts Receivable for $870 and a credit to Fees Earned for $780. c.The adjustment was posted as a debit to Cash and a credit to Fees Earned. d.The adjustment was completely omitted.

Answer 1

Answer:

b.The adjustment was posted as a debit to Accounts Receivable for $870 and a credit to Fees Earned for $780

Explanation:

Event though those accounts are the ones, and it´s right to debit and credit in that way, the adjustment must balance.

In each journal entry, sum of Debits must be equal to sum of Credits, otherwise TRIAL BALANCE WILL BE WRONG.

In this case, there is a difference of $ 90 ( DEBIT > CREDIT )