Prepare the journal entries to rectify the given errors.

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Chapter 2, Problem 36AP

1.

To determine

Prepare the journal entries to rectify the given errors.

2.

To determine

Ascertain whether the given error would cause net income to be overstated, understated or unchanged.

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1. Using the quick tests for locating errors, find the error in each of the two questions below. Describe the type of error, explain how you discovered it, and make corrections. a) GENERAL JOURNAL PARTICULARS DEBIT 6 0 00 31 ol ol ol - CREDIT Bank Equipment Сapital 90 0 0 Supplies 10 0 Accounts Payable 10 0 25o Expense Bank 250 Accounts Receivable 16 8 - Revenue 16 8 Bank 50 Accounts Receivable 50 Drawings Bank Bank Accounts Receivable Supplies 6 000 - 250 168 50- 100 50 72 6 050- 122- 118 5 728 Equipment 3 000 Accounts Payable Capital 100 – 9 000 Drawings Revenue Experse 72 - 168 - 205

Which of the following errors would be detected by a trial balance? Group of answer choices The cashier pocketed the cash from a cash sale and did not record it on the register A cash sale was recorded in the sales account as $548 instead of $584 but was correctly recorded in the bank account Supplies purchased on credit were recorded as a debit to the plant and equipment account and a credit to the accounts payable account Staff wages were recorded as office expenses

(Learning Objectives 4, 5: Account for accounts receivable and uncollectible receivables) On November 30, Palmer Party Planners had a $41,000 balance in Accounts Receivableand a $3,584 credit balance in Allowance for Uncollectible Accounts. During December, Palmermade credit sales of $200,000. December collections on account were $168,000, and write-offsof uncollectible receivables totaled $2,910. Uncollectible-account expense is estimated as 1% ofcredit sales. No sales returns are expected. Ignore cost of goods sold.Requirements1. Journalize sales, collections, write-offs of uncollectibles, and uncollectible-accountexpense by the allowance method during December. Explanations are not required.2. Show the ending balances in Accounts Receivable, Allowance for Uncollectible Accounts,and Net Accounts Receivable at December 31. How much does Palmer expect to collect?3. Show how Palmer Party Planners will report Accounts Receivable and net sales on itsDecember 31 balance sheet and income…