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Exercise 5-10 Blaufuss Company

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E5-10 An inexperienced accountant for Blaufuss Company made the following errors in
recording merchandising transactions.

1. A $175 refund to a customer for faulty merchandise was debited to Sales $175 and credited
to Cash $175.

2. A $180 credit purchase of supplies was debited to Merchandise Inventory $180 and credited
to Cash $180.

3. A $110 sales discount was debited to Sales.

4. A cash payment of $20 for freight on merchandise purchases was debited to Freight-out
$200 and credited to Cash $200.

Instructions
Prepare separate correcting entries for each error, assuming that the incorrect entry is not reversed.
(Omit explanations.)

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