Assume found the following errors: Equipment purchased for P 7,500 at year-end was debited to Expenses.
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Question:
Assume found the following errors:
✓ Equipment purchased for P 7,500 at year-end was debited to Expenses.
✓ Sales on credit of P 829 were debited to Accounts Receivable for P 892 and credited to Revenues for P 829.
✓ A P 8,000 collection on accounts receivable was debited Cash and credited to Revenues.
✓ The inventory amount is understated by P 2,500 (cost of goods sold is included in expenses).
Requirement:
1. Prepare correcting entries.
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
Posted Date: