At Crane Company, the following errors were discovered after the transactions had been journalized and posted.1. A collection on account from a customer for $960 was recorded as a debit to Cash $960 and a credit to Service Revenue $960.2. The purchase of store supplies on account for $1,560 was recorded as a debit to Supplies $1,190 and a credit to Accounts Payable $1,190. No. Account Titles and ExplanationDebitCredit1.2.

A correcting entry is a journal entry that is recorded in order to fix an error in recording…

Answered: At Crane Company, the following errors…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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At Crane Company, the following errors were discovered after the transactions had been journalized and posted.

1.		A collection on account from a customer for $960 was recorded as a debit to Cash $960 and a credit to Service Revenue $960.
2.		The purchase of store supplies on account for $1,560 was recorded as a debit to Supplies $1,190 and a credit to Accounts Payable $1,190.

No. Account Titles and Explanation
Debit
Credit
1.
2.

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