Question

The following errors took place in journalizing and posting transactions:Cash of $4,370 received on account was recorded as a debit to Fees Earned and a credit to Cash.A $1,440 purchase of supplies for cash was recorded as a debit to Supplies Expense and a credit to Accounts Payable. Note: Prepare the entry to reverse the original entry first.

Answer 1

Answer and Explanation:

The journal entries are shown below:

Cash A/c Dr $8,760

To Fees earned $4,370

To Accounts Receivable $4,370

(being wrong entry made now corrected)

Accounts Payable Dr $1,440

To Supplies Expense $1,440

Supplies a/c Dr 1760

To Cash 1760

(being wrong entry made now corrected)