a. Cash of $8,800 received on account was recorded as a debit to Fees Earned and a credit to Cash.
b. A $1,760 purchase of supplies for cash was recorded as a debit to Supplies Expense and a credit to Accounts Payable.
Journalize the entries to correct the errors. Omit explanations.
Answer:
The correction could be made with one or two entries as shown below.
a. Cash17,600
Fees Earned8,800
Accounts Receivable8,800
or (reverses original entry)
Cash8,800
Fees8,800
Cash8,800
Accounts Receivable8,800
b. Accounts Payable*1,760
Supplies Expense1,760
Supplies1,760
Cash1,760
* The first entry reverses the original entry. The second entry is the entry that should
have been made initially.