Correcting Misrecorded Asset Sale

Steps:

• Identify error: $1000 cash from fixture sale wrongly credited to Sales account via sales journal.
• Proper recording: Debit Bank for cash; credit Fixtures to remove asset (or recognize gain, but simplified here).
• Correction needed: Reverse Sales credit by debiting Sales; credit Fixtures instead.
• Journal entry: Debit Sales $1000, Credit Fixtures$1000.

Why C is correct:

• Reverses erroneous Sales credit (per double-entry principle) and properly reduces Fixtures asset for disposal.

Why the others are wrong:

• A: Incomplete entry lacks credit side, violating double-entry rule.
• B: Records cash against "disposal of fixtures" (non-standard account) without reversing Sales error.
• D: Credits "disposal of fixtures" instead of Fixtures, failing to adjust the actual asset account.

Final answer: C