Jinan Company, the following errors were discovered after the transactions hadbeen journalized and posted.Instructions: Prepare the correcting entries without reversing the incorrect entry.A collection on account from a customer for $780 was recorded as a debit to Cash $780 and a credit to Service Revenue $780.The purchase of store supplies on account for $1,570 was recorded as a debit to Store Supplies $1,750 and a credit to Accounts Payable $1,750.

When sales is made on credit, then the debtor a/c is credited and not cash A/c. The rectifying entry…

Answered: Jinan Company, the following errors…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter4: Journalizing And Posting Transactions

Section: Chapter Questions

Problem 8SEB: FINDING AND CORRECTING ERRORS On April 25, after the transactions had been posted, Mary Smith...

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Jinan Company, the following errors were discovered after the transactions had

been journalized and posted.

Instructions: Prepare the correcting entries without reversing the incorrect entry.

A collection on account from a customer for $780 was recorded as a debit to Cash $780 and a credit to Service Revenue $780.
The purchase of store supplies on account for $1,570 was recorded as a debit to Store Supplies $1,750 and a credit to Accounts Payable $1,750.

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