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Question: 4 B Company made the following errors in recording merchandising transactions. This is due to an inexperienced accountant. 1. A cash payment of OMR
Question: 4 B Company made the following errors in recording merchandising transactions. This is due to an inexperienced accountant. 1. A cash payment of OMR 20 for freight on merchandise purchases was debited to Freight- out OMR 200 and credited to Cash OMR 200 2. A OMR 195 refund to a customer for faulty merchandise was debited to Sales Revenue OMR 195 and credited to Cash OMR 195. 3. A OMR 215 sales discount was debited to Sales Revenue. 4. A OMR 180 credit purchase of supplies was debited to Inventory OMR 180 and credited to Cash OMR 180 Instructions: Prepare separate correcting entries for each error, assuming that the incorrect entry is not reversed. Solution: Date Account name Dr Cr
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