Question

On March 1, it was discovered that the following errors took place in journalizing and posting transactions: a. Rent Expense of $4,650 paid for the current month was recorded as a debit to Miscellaneous Expense and a credit to Rent Expense. b. The payment of $3,700 from a customer on account was recorded as a debit to Cash and a credit to Accounts Payable.

Answer 1

Rent expenbse 4,650 debit

Miscellaneous expense 4,650 credit

--to reverse the mistaken entry--

Rent expense 4,650 debit

Cash 4,650 credit

--to record the correct entry--

Account Pyable 3,700 debit

Accounts Receivables 3,700 credit

--to ammend mistaken entry--

Step-by-step explanation:

We have two approachs to solve for accoutning mistakes, the first is to reverse the incorrect entry and then record the entry in a proper manner.

(like on A)

The second method is to do adjustment to fix it like on b

the mistake was to use accounts payable therefore, we write-off that and credit the correct account which is accoutns receivables