During the bank reconciliation process, an accountant identified an error. a check written for $20 to pay a supplier for goods purchased on credit was erroneously recorded in the company's records for $200. which of the following entries would correct this error?
(a) cash 180; accounts payable 180
(b) cash 180; accounts receivable 180
(c) account receivable 180; accounts payable 180
(d) none of these, as the error should be corrected by the supplier's personnel

(A) Cash 180; Accounts Payable 180

Explanation:

Here, with this transaction cash actually paid is $20 whereas recorded is $200.

Therefore in order to correct this accounts payable shall be increased by the difference $180, that is by crediting Accounts Payable by $180

Further cash is actually $180 less than actual as per books, therefore, this shall be reversed in books, for which cash account shall be debited with $180.

Therefore correct option is

(A) Cash 180; Accounts Payable 180

d. automatic stabilizers.

explanation: