An inexperienced accountant for Gulliver Company made the following errors in recording merchandising transactions. 1. A $175
Question:
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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Related Book For
Hospitality Financial Accounting
ISBN: 978-0470083604
2nd Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Agnes L.
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