An inexperienced accountant for Hoang Company made the following errors in recor
ID: 2418871 • Letter: A
Question
An inexperienced accountant for Hoang Company made the following errors in recording merchandising transactions. A $195 refund to a customer for faulty merchandise was debited and credited to Cash $195 credited to Cash $195. A $ 180 credit purchase of supplies was debited to Inventory $ $180and credited to Cash $180. A $215 sales discount was debited to Sales Revenue. A cash payment of $20 for freight on merchandise purchases was debited to Freight-Out $200 and credited to Cash $200. Prepare separate correcting entries for each error, assuming that the incorrect entry is not reversed. (Omit explanations.)Explanation / Answer
3) Sales DIscount DR 215
To Allowance for Sales Discount 215
2) Supplies A/c $180
To Accounts Payable $180
4) Freight in Dr $200
To CAsh $200
1) Sales Return A/c $ 195
To Cash $195