You have found two specific errors in the accounts of A H Coramba and they both need correction.

a. The tax credit note received from the account payable Vic Hair for $40.26 ($36.60 + $3.66 GST) relating to an overcharge for inventory was incorrectly processed as a credit note to the account receivable Vince Hare as $26.40

($24.00 + $2.40 GST). You are required to prepare the correction journal entry, and reversal and correcting general journals.

b. Payment to account payable Terry Johnson arrived at the office too late to be allowed any discount. The payment of

$870.30 was for processed tax invoices totalling $900.00.