Record general journal entries to correct the errors described below. Assume that the incorrect entries were posted
Question:
a. A freight cost of $ 85 incurred on equipment purchased for use in the business was debited to Freight In.
b. The issuance of a credit memo to Lang Company for $ 119 for merchandise returned was recorded as a debit to Purchases Returns and Allowances and a credit to Accounts Receivable, Lang Company.
c. A cash sale of $ 68 to J. L. LaSalle was recorded as a sale on account.
d. A purchase of merchandise from James Company in the amount of $ 750 with a 25 percent trade discount was recorded as a debit to Purchases and a credit to Accounts Payable of $ 750 each.
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...
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Related Book For
College Accounting
ISBN: 978-1111528126
11th edition
Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille
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