Cash received from a customer on account was debited for $570, and accounts receivable was credited for the same amount. The actual collection was for $750. 2. The purchase of a computer printer on account for $841 was recorded as a debit to supplies for $841 and a credit to accounts payable for $841. 3. Services were performed on account for a client for $890. Accounts receivable was debited for $890 and service revenue was credited for $89. 4. A payment of $406 for telephone charges was recorded as a debit to office expense for $406 and a debit to cash for $406. 5. When the unearned service revenue account was reviewed, it was found that service revenue amounting to $666 was performed prior to june 30 (related to unearned service revenue). 6. A debit posting to salaries and wages expense of $1,011 was omitted. 7. A payment on account for $206 was credited to cash for $206 and credited to accounts payable for $260.

Question

Business

Stafford

11 April, 12:09

Cash received from a customer on account was debited for $570, and accounts receivable was credited for the same amount. The actual collection was for $750. 2. The purchase of a computer printer on account for $841 was recorded as a debit to supplies for $841 and a credit to accounts payable for $841. 3. Services were performed on account for a client for $890. Accounts receivable was debited for $890 and service revenue was credited for $89. 4. A payment of $406 for telephone charges was recorded as a debit to office expense for $406 and a debit to cash for $406. 5. When the unearned service revenue account was reviewed, it was found that service revenue amounting to $666 was performed prior to june 30 (related to unearned service revenue). 6. A debit posting to salaries and wages expense of $1,011 was omitted. 7. A payment on account for $206 was credited to cash for $206 and credited to accounts payable for $260.

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Esperanza Kerr · Answer 1

Since amount received was $750.2, and amount recorded is only $570, The difference of $180.2 needs to be recorded as it was short recorded earlier. Entry for below is:

Cash ... DR $180.2

To Accounts Receivable ... $180.2

Since a computer printer is an equipment it needed to be debited in Equipments, but instead it was debited to supplies, Thus the correcting Entry for the same would be:

Equipment ... DR $841

To Supplies ... $841

The entry passed is wrong as sales was credited wrongly thus sales needs to be credited further by $801, Its absurd that the entry was not balanced, Thus the accountant will require to go to sales ledger and correct the amount.

Since Telephone charges were wrongly debited to office expenses, office expenses will be credited and Telephone expenses will be debited by the same amount

Telephone Expenses ... DR $406

To office Expenses ... $406

Unearned Services Revenue, will need to be debited so that income earned will be credit accordingly.

Unearned Service Revenue ... DR $666

To Service Revenue ... $666

Since debit to wages and salary was omitted thus a debit of $1011 needs to be made in Wages and Salary Ledger.

Since accounts payable was over credited by $54 it needs to be reduced by $54 in the respective ledger.