As Mel Smith was doing his year-end accounting, he noticed that the bookkeeper had made errors in recording several transactions. The erroneous transactions are as follows: (a) A check for $700 was issued for goods previously purchased on account. The bookkeeper debited Accounts Receivable and credited Cash for $700. What is the correcting entry needed for this transaction?(Points : 1)

Interest Expense 700 Interest Receivable 700 Cash 700 Accounts Receivable 700 Accounts Payable 700 Accounts Receivable 700 Cash 700 Depreciation Expense 700

The income statement for the year 2015 of Fugazi Co. contains the following information:

Revenues $70,000

Expenses:

Salaries and Wages Expense $45,000

Rent Expense 12,000

Advertising Expense 8,000

Supplies Expense 6,000

Utilities Expense 2,500

Insurance Expense 2,000

Total expenses 75,500

Net income (loss) $(5,500)

The entry to close Income Summary to Owners Capital includes(Points : 1)

a debit to Revenue for $70,000. credits to Expenses totaling $75,500. a credit to Income Summary for $5,500. a credit to Owners Capital for $5,500.