If The Payment Of Cash For Rent Was Journalized And Posted In Error As A Debit To Miscellaneous Expense Instead Of Rent Expense, The Correcting Entry Will Include A Credit To Cash. True Or False
Answer Of True And False (T&F) Question With Brief Explanation The answer to this statement is “False”, as the rectifying or correcting entry (CE) will include a credit to miscellaneous expense account which was wrongly debited, now credited it to cancel the effect of Miscellaneous Expense Account and Rent Expense Account is debited in the CE. The correct journal entry, which should be recorded, for rent paid for cash includes a debit to rent expense account and a credit to cash account as shown below: RE expense a/c XXX Cash a/c XXX ...