Correcting an insurance payment recorded at the wrong amount

Transaction

The insurance premium for this month, $1,250.00, was paid by check, but the bookkeeper recorded the payment as $1,520.00: debit Insurance Expense, credit Cash. The check cleared the bank for $1,250.00. Record the correcting entry.

Assumptions: The premium covers this month only (nothing is prepaid).

Accounts

Tap an account, then choose Debit or Credit and type the amount. × removes a line.

Debit

No lines yet. Choose an account above.

Credit

No lines yet. Choose an account above.

Debits $0.00Credits $0.00