Morgan Company used supplies in the amount of $2,000. Due to an error in posting to the general ledger, the supplies account was credited for $2,000 while supplies expense was debited for $200. Which of the following is correct? Multiple Choice O The required adjusting journal entry is classified as a deferral. Morgan's accountant will need to prepare an adjusting entry debiting Cash for $1,800. The other financial statements will be impacted by this error. Since only revenue and expense accounts need adjustments, the accountant should debit supplies expense and credit a revenue account.
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- Tech Support Services has the following unadjusted trial balance as of January 31, 2019: The debit and credit totals are not equal as a result of the following errors: a. The cash entered on the trial balance was overstated by 8,000. b. A cash receipt of 4,100 was posted as a debit to Cash of 1,400. c. A debit of 12,350 to Accounts Receivable was not posted. d. A return of 235 of defective supplies was erroneously posted as a 325 credit to Supplies. e. An insurance policy acquired at a cost of 3,000 was posted as a credit to Prepaid Insurance. f. The balance of Notes Payable was overstated by 21,000. g. A credit of 3,450 in Accounts Payable was overlooked when the balance of the account was determined. h. A debit of 6,000 for a withdrawal by the owner was posted as a debit to Thad Engelberg, Capital. i. The balance of 28,350 in Advertising Expense was entered as 23,850 in the trial balance. j. Miscellaneous Expense, with a balance of 4,600, was omitted from the trial balance. Instructions 1. Prepare a corrected unadjusted trial balance as of January 31, 2019. 2. Does the fact that the unadjusted trial balance in (1) is balanced mean that there are no errors in the accounts? Explain.Prior to recording the following, Elite Electronics, Incorporated, had a credit balance of $2,200 in its Allowance for Doubtful Accounts. Required: Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) On August 31, a customer balance for $320 from a prior year was determined to be uncollectible and was written off. On December 15, the customer balance for $320 written off on August 31 was collected in full.On February 1, a customer's account balance of $3,600 was deemed to be uncollectible. What entry should be recorded on February 1 to record the write-off assuming the company uses the allowance method? Multiple Choice Debit Allowance for Doubtful Accounts $3,600; credit Accounts Receivable $3,600. Debit Allowance for Doubtful Accounts $3,600; credit Bad Debts Expense $3,600. Debit Bad Debts Expense $3,600; credit Accounts Receivable $3,600. Debit Bad Debts Expense $3,600; credit Allowance for Doubtful Accounts $3,600. Debit Accournts Receivable $3,600; credit Allowance for Doubtful Accounts $3,600. < Prev 9 of 10 Nex MacBook Air
- For a business that uses the allowance method of accounting for uncollectible receivables: Journalize the entries to record the following: Use correct journal format. Just use the month for the date. Record the adjusting entry at December 31, the end of the first fiscal year, to record the bad debt expense. The accounts receivable account has a balance of $850,000, and the contra asset account before adjustment has a debit balance of $4000. Analysis of the receivables (aging) indicates uncollectible receivables of $17,200. In March of the next year, the $720 owed by Fronk Co. on account is written off as uncollectible. In November of the next year, $400 of the Fronk Co. account 1s reinstated and payment of that amount is received. In December of the next year, $250 is received on the $800 owed by Dodger Co. and the remainder is written off as uncollectible.On February 1, a customer's account balance of $2,600 was deemed to be uncollectible. What entry should be recorded on February 1 to record the write-off assuming the company uses the allowance method? Multiple Choice Debit Allowance for Doubtful Accounts $2,600; credit Bad Debts Expense $2,600. O Debit Accounts Receivable $2,600; credit Allowance for Doubtful Accounts $2,600. O Debit Bad Debts Expense $2,600; credit Accounts Receivable $2,600. O Debit Allowance for Doubtful Accounts $2,600; credit Accounts Receivable $2,600. O Debit Bad Debts Expense $2,600; credit Allowance for Doubtful Accounts $2,600.Required: Post the rectification entry for each of the above errors. Question five: Rectify the following errors: 1. Other income received of Tshs880,000 was correctly recorded in the cash book, but was debited to the other income account. 2. Cash paid for wages of Tshs9.6 million was posted to the wages account as Tshs6.9 million. 3. The purchases day book was overcast by Tshs2 million. 4. The sales day book was undercast by Tshs6 million. 5. The cash book credit side was undercast by Tshsl.3 million. 6. The prepaid expense account debit side was undercast by Tshs0.6 million. 7. A sale of Tshsl.5 million was fully credited to the sales account. However, sales tax of Tshs0.5 million was included in it. 8. A building purchased for Tshs60 million was entered in the building account as Tshs50 million. The company charges 2% depreciation. 9. Repairs to machinery of Tshs5 million were capitalised and a depreciation of 5% was charged on it. Question six: How much will appear in the suspense…
- A customer of Mutare paid for merchandise originally purchased on account with a check thathas been erroneously entered into Mutare’s cash account for $570 (it actually has been issuedand paid for $750).Required:Record the appropriate journal entry to correct the error.During the current month, the following errors occurred in recording transactions in the purchases journal or in posting from it: a. An invoice for $1,875 of supplies from Kelly Co. was recorded as having been received from Kelley Co., another supplier.b. A credit of $420 to Blackstone Company was posted as $240 in the subsidiary ledger.c. An invoice for equipment of $4,800 was recorded as $4,000.d. The Accounts Payable column of the purchases journal was overstated by $3,600.How will each error come to the bookkeeper’s attention, other than by chance discovery?Prior to recording the following, Elite Electronics, Inc., had a credit balance of $2,000 in its Allowance for Doubtful Accounts.Required:Prepare journal entries for each transaction.a. On August 31, a customer balance for $300 from a prior year was determined to be uncollectible and was written off.b. On December 15, the customer balance for $300 written off on August 31 was collected in full.
- Tech Support Services has the following unadjusted trial balance as of January 31, 2019: The debit and credit totals are not equal as a result of the following errors:a. The cash entered on the trial balance was overstated by $8,000.b. A cash receipt of $4,100 was posted as a debit to Cash of $1,400. c. A debit of $12,350 to Accounts Receivable was not posted.d. A return of $235 of defective supplies was erroneously posted as a $325 credit to Supplies.e. An insurance policy acquired at a cost of $3,000 was posted as a credit to PrepaidInsurance.f. The balance of Notes Payable was overstated by $21,000.g. A credit of $3,450 in Accounts Payable was overlooked when the balance of the account was determined.h. A debit of $6,000 for a withdrawal by the owner was posted as a debit to ThadEngelberg, Capital.i. The balance of $28,350 in Advertising Expense was entered as $23,850 in the trialbalance.j. Miscellaneous Expense, with a balance of $4,600, was omitted from the trial…Illustrate the effects on the accounts and financial statements of the following transactions in the accounts of Kitchen Depot Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables: If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Create a balance sheet for all dates given. July 3. Received $23,000 on an account. July 3. Wrote off the remaining $34,010 owed on account as uncollectible. Oct. 8. Reinstated the account that had been written off on July 3. (Do not record the collection of cash yet.) Oct. 8 Received $34,010 cash in full payment for the reinstated account.Fred's trial balance did not balance so he opened a suspense account with a debit balance of $346. Control accounts are maintained for receivables and payables. Fred discovered the following: 1 The sales day book was undercast by $400. Purchases of $520 from the purchases day book have only been recorded in the payables ledger control account. 2 3 Profit on sale of non-current assets of $670 had been recorded in the sundry income account as $760. What is the remaining balance on Fred's suspense account after these errors have been corrected?|