Please please be quick Crusty Enterprise Trial Balance as at Dec 31, 2020 did not balance as the debit side is greater than the credit side by $5670.After investigation the following errors were revealed:i The purchases figure included $2,480 which was paid for the purchase of motorvehicle.ii. Discount receivred of $1,680 was debited to the Discount received account.i. Purchases was undercast by $860ir. Money received of $4,030 from J Blake was credited to his account as $3040T. Goods purchased as costing $230 from A Comel was credited to B. Collinsvi. Cash received of $2,180 was received from K Kong had not been posted to hisассount.Required:a. Prepare the journal entries to correct the errors. (Narrations required)b. Prepare the suspense account.c. Identify one error of principle and one error of commission and state the reasons.

The suspense account is created to record the error (Omission) in trial balance and make the trial…

Crusty Enterprise Trial Balance as at Dec 31, 2020 did not balance as the debit side is greater than the credit side by $5670. After investigation the following errors were revealed: i The purchases figure included $2,480 which was paid for the purchase of motor rebicle. ii. Discount received of $1,680 was debited to the Discount received account. i Purchases was yndersast by $860 iv. Money received of S4,030 from J Blake was credited to his account as $3040 T. Goods purchased as costing $230 from A Conel was credited to B. Collins vi. Cash received of $2,180 was received from K Kong had not been posted to his account. Required: a. Prepare the journal entries to correct the errors. (Narrations required) b. Prepare the suspense account. c. Identify one error of principle and one error of commission and state the reasons.

Crusty Enterprise Trial Balance as at Dec 31, 2020 did not balance as the debit side is greater than the credit side by $5670. After investigation the following errors were revealed: i The purchases figure included $2,480 which was paid for the purchase of motor rebicle. ii. Discount received of $1,680 was debited to the Discount received account. i Purchases was yndersast by $860 iv. Money received of S4,030 from J Blake was credited to his account as $3040 T. Goods purchased as costing $230 from A Conel was credited to B. Collins vi. Cash received of $2,180 was received from K Kong had not been posted to his account. Required: a. Prepare the journal entries to correct the errors. (Narrations required) b. Prepare the suspense account. c. Identify one error of principle and one error of commission and state the reasons.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 44BE: Write-Off of Uncollectible Accounts King Enterprises had 27 customers utilizing its financial...

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