[roadtocpa]

Hi everyone!

Im getting stuck with one of beckers problems:

Make correcting entry

a 2000 accounts receivable for sales made in year 2 was not recorded in year 2 , but was recorded as a sale only when the cash was received in year 3.

Beckers answer ; Y2 (2000) , Y3 2000

My question isn’t the correct answer

Y2: 2000 , Y3: (2000) ? Since they overstated year 3 sales and understated year 2 sales.

Thanks in advance!

[jslo123]

it's cuz they are saying () is credit and positive is debit.

Sales revenue are credited. Thus, ()

AUD - 89
BEC - 92
FAR - 90
REG - 79

LETZ GET IT

[Missy]

What account are they asking you to adjust? Sounds like you think they're asking you to adjust receivables and if that was the case you'd be right. But it sounds like they pulled a switcheroo and are asking for the adjustment to revenue even though the question starts talking about receivables. This is what the exams do, a very subtle nuance in the wording is intended to throw you off.

Old timer,  A71'er since 2010.

Finance manager/HR manager

 

 

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[Author]

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