The cash receipts journal below contains five entries. All five entries are for legitimate cash receipt transactions, but the journal contains some errors in recording the transactions. In fact, only one entry is correct, and each of the other four entries contains one error.

Required
1. Identify the correct entry in the cash receipts journal above.
2. Identify the error in each of the other four entries.
3. Using the following format, prepare a corrected cash receipts journal. All column totals are correct in the cash receipts journal that follows.

Transcribed Image Text:

Cash Receipts Journal Page 16 Debits Credits Other Accounts Cost of Goods Sold Dr Sales Accounts Discounts Receivable Revenue 7,450 3,460 Sales Post. Ref. AmountInventory Cr Date Cash Account Title May. 3 7,110 340 Alcon Labs Ltd. 3,460 Carl Ryther 110,000 10 110,000 730 30 10,600 31 128,440 Land 19 19 11,330 124,790 (41) 440 6,310 6,750 (51/13) 340 10,910 Totals (42) (12) Total Dr $128,780 Total Cr $135,700 Cash Receipts Journal Page 16 Debits Credits Other Accounts Cost of Goods Sold Dr Sales Discounts Receivable RevenueAccount Title Accounts Sales Post. Ref. Amount Inventory Cr Date Cash May. 3 Alcon Labs Ltd. Carl Ryther Land 10 19 30 31 131,900 19 Totals 11,330 (41) 6,750 (51/13) 340 10,910 (12) 110,000 (42) Total Dr$132,240 Total Cr $132,240