An inexperienced accountant for Zoeng Company, Ltd. made the following errors in recording merchandising transactions. 1. A
Question:
1. A HK$1,750 refund to a customer for faulty merchandise was debited to Sales Revenue HK$1,750 and credited to Cash HK$1,750.
2. A HK$1,400 credit purchase of supplies was debited to Inventory HK$1,400 and credited to Cash HK$1,400.
3. A HK$2,150 sales discount was debited to Sales Revenue.
4. A cash payment of HK$200 for freight on merchandise purchases was debited to Freight-Out HK$2,000 and credited to Cash HK$2,000.
Instructions
Prepare separate correcting entries for each error, assuming that the incorrect entry is not reversed. (Omit explanations.)
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Related Book For
Financial Accounting
ISBN: 978-1118978085
IFRS 3rd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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