Working It Out Ann Kerrigan mistakenly recorded the collection of a $1,000 receivable as a debit to Cash and a credit to Service Revenue for $1,000. 1. Prepare the correcting entry. 2. Assume that Kerrigan's net income before the correction was $26,000. How much is her corrected net income?

Working It Out Ann Kerrigan mistakenly recorded the collection of a $1,000 receivable as a debit to Cash and a credit to Service Revenue for $1,000. 1. Prepare the correcting entry. 2. Assume that Kerrigan's net income before the correction was $26,000. How much is her corrected net income?

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 72E

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Question

Working It Out

Ann Kerrigan mistakenly recorded the collection of a $1,000 receivable as a debit to Cash and a credit to Service Revenue for $1,000. 1. Prepare the correcting entry. 2. Assume that Kerrigan's net income before the correction was $26,000. How much is her corrected net income?

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