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Allie Murphy has trouble keeping her debits and credits equal. During a recent month, Allie made the following errors: requirement 2. for each transaction identify
Allie Murphy has trouble keeping her debits and credits equal. During a recent month, Allie made the following errors:
a. Allie recorded a $750 rent payment by debiting Rent expense for $75 and crediting Cash for $75 b. In recording an $850 payment on account. Allie debited Accounts receivable and credited Cash. c. Allie recorded the receipt of cash for service revenue by debiting Cash for $820 instead of the correct amount of $280 Allie also credited Service revenue for $820, the incorrect amount. d. Alie recorded a $160 purchase of supplies on account by debiting Accounts payable and crediting Supplies e. In preparing the trial balance, Alie omitted a $20,000 note payable Requirement 2. For each fransaction identify the account(s) with an incorrect balance and indicate the amount and direction of the ern amounts as positive numbers. Leave any unused lines blank.) requirement 2. for each transaction identify the account(s) with an incorrect balance and indicate the amount and direction of the error. Transaction A is answered.
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