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Please answer the questions 17.18, 18.1 and 18.2 with your detailed explanations, it's much appreciated! 17.18 Paula Co is reconciling its receivables control account and
Please answer the questions 17.18, 18.1 and 18.2 with your detailed explanations, it's much appreciated!
17.18 Paula Co is reconciling its receivables control account and has discovered the following items: (1) An invoice for $110 had been recorded in the receivables ledger as $1,100. (2) A cash sale of $100 to a customer had been posted to the receivables ledger. Where should the correction for each of the items be recorded? Item 1 Receivables ledger Item 2 Receivables ledger When Q's trial balance failed to agree, a suspense account was opened for the difference. The trial balance totals were: DEBIT $864,390 CREDIT $860,930 The company does not have control accounts for its receivables and payables ledgers. The following errors were found: (1) In recording an issue of shares at par, cash received of $333,000 was credited to the ordinary share capital account as $330,000. (2) Cash $2,800 paid for plant repairs was correctly accounted for in the cash book but was credited to the plant asset account. (3) The petty cash book balance $500 had been omitted from the trial balance. (4) A cheque for $78,400 paid for the purchase of a motor car was debited to the motor vehicles account as $87,400. (5) A contra between the receivables ledger and the payables ledger for $1,200 which should have been credited in the receivables ledger and debited in the payables ledger was actually debited in the receivables ledger and credited in the payables ledger. Which of these errors will require an entry to the suspense account to correct them? All five items 3 and 5 only 2,4 and 5 only 1,2,3 and 4 only .2 What will the balance on the suspense account be after making the necessary entries to correct the errors affecting the suspense account? $2,440 DEBIT $15,560 CREDIT $13,640 DEBIT $3,440 DEBIT
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