Multiple choice technology packaged enterprise solutions

A miscellaneous receipt is entered by mistake and posted to GL. What is the best method to reverse the miscellaneous receipt

  1. A. Carry out the standard reversal of the miscellaneous receipt

  2. B. Carry out the debit memo reversal of the miscellaneous receipt

  3. C. Create receivable activity adjustment for the reversal of the miscellaneous receipt

  4. D. Create a journal entry in general ledger to reverse the accounting impact created by the posting of the miscellaneous receipt.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Standard reversal is the correct method to reverse a miscellaneous receipt. Debit memo reversals apply to standard invoice-applied receipts when the customer's balance must be reinstated, and GL adjustments or manual adjustments bypass subledger integrity and fail to properly correct the receipt's subledger state.

Keep practicing — related questions