Streamlined Inc. hired a new accountant named Clark Dolittle. After a hectic first week on the job, the Controller noted that Clark may have made some accounting errors journalizing transactions.

Prepare the correcting entries to correct Clarks errors. Explanations are not required.

a) The owner was reimbursed for a $1,900 freight bill paid with his personal funds for some inventory received. Clark recorded the reimbursement cheque to the owner as a debit to Owners Withdrawals and he credited Cash. Streamlined Inc. uses the perpetual inventory method.

b) Inventory of $7,200 was purchased for cash. Clark debited Inventory for $720 and credited cash for $720.