The following errors occurred in the accounting records of

Pacific Outfiters,

Inc.:

LOADING...

(Click

the icon to view the errors.)

Requirements

1.	Prepare the necessary journal entries to correct each of these errors.
2.	For each of these errors, determine whether the error would cause net income to be overstated, understated, or unchanged.

Question content area bottom

Part 1

Requirement 1. Prepare the necessary journal entries to correct each of these errors. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

a. The company accountant recorded the receipt of cash for service revenue by debiting Cash for

$590

instead of the correct amount of

$950.

Service revenue was also credited for

$590,

the incorrect amount.

Begin by preparing the entry to reverse this error.