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The end of period spreadsheet is useful in preparing an adjusted trial balance from which the three financial statements can be prepared.

The end of period spreadsheet is useful in preparing an adjusted trial balance from which the three financial statements can be prepared. Please indicate the result in the adjusted trial balance under the following circumstances. 

 A. An account has a debit balance. The adjustment requires a credit to that account. The debit amount is higher than the credit amount. Is the result in the adjusted trial balance a debit or credit.

 

B. An account has a debit balance. The adjustment requires a credit to that account. The credit amount is higher than the Debit amount. Is the result in the adjusted trial balance a debit or credit


C. An account has a credit balance. The adjustment requires a credit to that  account. Is the result in the adjusted trial balance a credit or debit.


 D. An account has a credit balance. The adjustment requires a debit to the account. The debit amount is higher. Is the result in the adjusted trial balance a debit or credit? 

 Please let me know why accounts receivable can never have a credit balance. Please let me know why accounts payable can never have a debit balance.

Top Answer

A. debit B. credit C. credit D. debit Imagine you have $10 accounts receivable outstanding, you have a debit balance... View the full answer

4 comments
  • Can you give examples on spreadsheet
    • takaakijapon
    • Jul 20, 2016 at 5:32pm
  • Sorry, it does not allow me to upload a file in comment, let me try to explain here
    • hinzai620
    • Jul 20, 2016 at 9:03pm
  • Suppose you have a debit balance of $10 accounts receivable, when your debot repay to you, you will credit to the accounts receivable account. A credit balance will only occur if the credit entry made is larger than the original debit balance. For example, if he repays you with $11, you will credit accounts receivable by $11, so the balance will be 10-11 = -1, which is a credit balance of $1. However, your debtor will not repay more than the original amount of $10, so the credit balance will not happen.
    • hinzai620
    • Jul 20, 2016 at 9:06pm
  • This is the same for accounts payable, but the debit and credit just reversed.
    • hinzai620
    • Jul 20, 2016 at 9:07pm

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Other Answers

The way to answer this question is ... View the full answer

findings.docx

Imagine you have $10 accounts receivable outstanding, you have a debit balance of $10 for
accounts receivable, when your debtor repay money to you, he will not return more than $10 to
you, so you...

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