rrent Attempt in Progress an inexperienced accountant for Cheyenne Ceramics made the following errors in recording merchandising transactions. A HK$1,580 refund to a customer for faulty merchandise was debited to Sales Revenue HK$1,580 and credited to Cash HK$1.580. 1. 2. A HK$1,440 credit purchase of supplies was debited to Inventory HK$1.440 and credited to Cash HK$1,440. 3. A HK$2,900 sales discount was debited to Sales Revenue. A cash payment of HK$350 for freight on merchandise purchases was debited to Freight-Out HK$2.210 and credited to Cash HK$2,210. 4. repare separate correcting entries for each error, assuming that the incorrect entry is not reversed. (Credit account titles are utomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the ccount titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit

rrent Attempt in Progress an inexperienced accountant for Cheyenne Ceramics made the following errors in recording merchandising transactions. A HK$1,580 refund to a customer for faulty merchandise was debited to Sales Revenue HK$1,580 and credited to Cash HK$1.580. 1. 2. A HK$1,440 credit purchase of supplies was debited to Inventory HK$1.440 and credited to Cash HK$1,440. 3. A HK$2,900 sales discount was debited to Sales Revenue. A cash payment of HK$350 for freight on merchandise purchases was debited to Freight-Out HK$2.210 and credited to Cash HK$2,210. 4. repare separate correcting entries for each error, assuming that the incorrect entry is not reversed. (Credit account titles are utomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the ccount titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 6E: Record general journal entries to correct the errors described below. Assume that the incorrect...

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Blue Company made the following errors in recording merchandising transactions. This is due to an inexperienced accountant. A cash payment of OMR 20 for freight on merchandise purchases was debited to Freight-out OMR 200 and credited to Cash OMR 200. A OMR 300 refund to a customer for faulty merchandise was debited to Sales Revenue OMR 300 and credited to Cash OMR 300. A OMR 210 sales discount was debited to Sales Revenue. Instructions: Prepare separate correcting entries for each error, assuming that the incorrect entry is not reversed.
8. Bentley Manufacturing Co. uses the LIFO method of costing its inventory, which indicates that: Select one: A. Merchandise are sold in the order in which they are received B. Last merchandise purchased is sold out first C. There is no specific order in which merchandise is sold D. None of the above 9. A Credit memo is a note from a seller indicating its intent to credit a customer’s accounts receivable. Select one: True False
The following Purchases Ledger Control Account PLCA was prepared for the year: Bal b/d 45,000 Bank 285,000 Credit Purchases * ? 145,000 Return outwards 12,500 Discount received 24,000 Bal c/d 78,500 297,500 297,500 It was suspected that there are some errors in the preparation of the PLCA, although the numerical values are correct except for the credit purchases. What would be the amount for credit purchases if the PLCA was to be written up correctly? 355,000 360,000 450,000 517,000
Sales transactionsJournalize the following merchandise transactions:a. Sold merchandise on account, $18,000 with terms 1/10, n/30. The cost of the goods sold was $10,800.b. Received payment less the discount.c. Refunded $600 to customer for defective merchandise that was not returned.
Name the error which was made under the following circumstances: during the accounting period the bookkeeper overestimated the sales account by N$200 and overestimated the purchases account by N$200. O a. Principle error O b. Error of complete reversal O c. Compensating error O d. Commission error
Record general journal entries to correct the errors described below. Assume that the incorrect entries were posted in the same period in which the errors occurred and were recorded using the periodic inventory system. a. A freight cost of 85 incurred on equipment purchased for use in the business was debited to Freight In. b. The issuance of a credit memo to Lang Company for 119 for merchandise returned was recorded as a debit to Purchases Returns and Allowances and a credit to Accounts Receivable, Lang Company. c. A cash sale of 68 to J. L. LaSalle was recorded as a sale on account. d. A purchase of merchandise from James Company in the amount of 750 with a 25 percent trade discount was recorded as a debit to Purchases and a credit to Accounts Payable of 750 each.
Errors As controller of Lerner Company, which uses a periodic inventory system, you discover the following errors in the current year: 1. Merchandise with a cost of 17,500 was properly included in the final inventory, but the purchase was not recorded until the following year. 2. Merchandise purchases are in transit under terms of FOB shipping point. They have been excluded from the inventory, but the purchase was recorded in the current year on the receipt of the invoice of 4,300. 3. Goods out on consignment have been excluded from inventory. 4. Merchandise purchases under terms FOB shipping point have been omitted from the purchases account and the ending inventory. The purchases were recorded in the following year. 5. Goods held on consignment from Talbert Supply Co. were included in the inventory. Required: For each error, indicate the effect on the ending inventory and the net income for the current year and on the net income for the following year.
A customer returns $870 worth of merchandise and receives a full refund. What accounts recognize this sales return (disregarding the merchandise condition entry) if the return occurs before the customer remits payment to the retailer? A. accounts receivable, sales returns and allowances B. accounts receivable, cash C. sales returns and allowances, merchandise inventory D. accounts receivable, cost of goods sold
The company just took a physical count of inventory and found $75 worth of inventory was unaccounted for. It was either stolen or damaged. Which journal would the company use to record the correction of the error in inventory? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journal
Help me answer these 2 entry: Given: Unadjusted balance Debit: ACCOUNTS RECEIVABLE - 740000 Debit: MERCHANDISE INVENTORY- 730000 answer the following: a. The company estimated that 3% of the Accounts receivable is doubtful of collection B. Physical count of merchandise of konth end revealed that unsold MDSE amounted to 470000
Information on Monty Corp., which reports under ASPE, follows: July 1 Dec. 29 3 5 9 Monty Corp. sold to Sandhill Ltd. merchandise having a sales price of $9,200, terms 2/10, n/60. Ignore cost of goods sold entry. Sandhill returned defective merchandise having a sales price of $900. The merchandise was not saleable and was scrapped. Accounts receivable of $20,200 are factored with Pronghorn Corp. without recourse at a financing charge of 8%. Cash Is received for the proceeds and collections are handled by the finance company. Specific accounts receivable of $15,700 are pledged to Landon Credit Corp. as security for a loan of $10,700 at a finance charge of 3% of the loan amount plus 8% Interest on the outstanding balance. Monty will continue to make the collections. All the accounts receivable pledged are past the discount period and were originally subject to a 2% discount. Sandhill notifies Monty that It Is bankrupt and will be able to pay only 10% of its account. Prepare the entry to…
The company just took a physical count of inventory and found $75 worth of inventory was unaccounted for. It was either stolen or damaged. Which journal would the company use to record the correction of the error in inventory? Group of answer choices 1.sales journal 2.purchases journal 3.general journal 4.cash disbursements journal