At Freds Fish Chips, the following errors were discovered after the transactions had been journalized and posted.

Question:

At Fred’s Fish Chips, the following errors were discovered after the transactions had been journalized and posted. Prepare the correcting entries.
1. A collection on account from a customer for $850 was recorded as a debit to Cash of $850 and a credit to Service Revenue of $850.
2. The purchase of store supplies on account for $2,340 was recorded as a debit to Store Supplies of $2,430 and a credit to of $2,430.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...