An inexperienced accountant for Gulliver Company made the following errors in recording merchandising transactions. 1. A $175

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An inexperienced accountant for Gulliver Company made the following errors in recording merchandising transactions.

1. A $175 refund to a customer for faulty merchandise was debited to Sales $175 and credited to Cash $175.

2. A $160 credit purchase of supplies was debited to Merchandise Inventory $160 and credited to Cash $160.

3. A $110 sales discount was debited to Sales.

4. A cash payment of $30 for freight on merchandise purchases was debited to Freight-out $300 and credited to Cash $300. Prepare separate correcting entries for each error, assuming that the incorrect entry is not reversed. (Omit explanations.)


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Hospitality Financial Accounting

ISBN: 978-0470083604

2nd Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Agnes L.

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