Allison Meehan has trouble keeping her debits and credits equal.

Allison Meehan has trouble keeping her debits and credits equal. During a recent month, Allison made the following errors:
a. Allison recorded a $900 payment of rent by debiting Rent Expense for $90 and crediting Cash for $90.
b. In recording a $700 payment on account, Allison debited Accounts Receivable and credited Cash.
c. Allison recorded the receipt of cash for service revenue by debiting Cash for $230 instead of the correct amount of $320. Allison also credited Service Revenue for the $230, the incorrect amount.
d. Allison posted a $190 purchase of supplies on account by debiting Accounts Payable and crediting Supplies.
e. In preparing the trial balance, Allison omitted a $95,000 note payable.

1. For each of these errors, state whether Allison’s mistake would cause the total debits and total credits on the trial balance to be unequal.
2. Identify each account with an incorrect balance, and indicate the amount and direction of the error.
Effect on trial Balance ...... Accounts Misstated
Total debits = Total credits .......... Cash
..................$810 too high
..................Rent Expense
..................$810 too low

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...


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