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Transaction recorded incorrectly

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An accountant has debited an account for $3,500 and credited a liability account for $2,000. Which of the following would be an incorrect way to complete the recording of this transaction?

credit another asset account for $1,500
credit another liability account for $1,500
debit another asset account for $1,500
credit the owner's capital account for $1,500

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Solution Summary

The solution explains how to correct a transaction which is recorded incorrectly.

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