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
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