**Title: Identifying and Correcting Common Accounting Errors****Introduction:**During the current month, several errors were identified in the recording of transactions in the purchases journal. These errors include misrecording supplier information, incorrect credit postings, and inaccuracies in invoice amounts and account balances. Understanding these errors and their identification methods can significantly enhance a bookkeeper's accuracy.**Recorded Errors:**1. **Supplier Misidentification:** - **Error:** An invoice for $1,875 worth of supplies from Kelly Co. was mistakenly recorded as having been received from Kelley Co., a different supplier. 2. **Credit Posting Error:** - **Error:** A credit of $420 intended for Blackstone Company was recorded as $240 in the subsidiary ledger. 3. **Invoice Amount Error:** - **Error:** An invoice for equipment worth $4,800 was incorrectly recorded as $4,000. 4. **Accounts Payable Overstatement:** - **Error:** The Accounts Payable column in the purchases journal was overstated by $3,600.**Detection Methods:**To ensure that these errors are identified without relying on chance, specific auditing and reconciliation methods can be employed. These may include:- **Supplier Verification:** Regularly cross-check supplier invoices with recorded transactions to prevent misidentification.- **Ledger Reconciliation:** Compare subsidiary ledger entries with original documentation to ensure accurate posting.- **Invoice Review:** Conduct periodic reviews of recorded invoices against issued ones to identify discrepancies in amounts.- **Balance Audits:** Regularly audit account balances to detect and correct overstatements or discrepancies.By implementing these practices, bookkeepers can more effectively identify and rectify errors, ensuring accuracy and integrity in financial records.

Purchase journal: It is a special journal and is also called as purchase book. It is used to record…

During the current month, the following errors occurred in recording transactions in the purchases journal or in posting from it: 1. An invoice for $1,875 of supplies from Kelly Co. was recorded as having been received from Kelley Co., another supplier. 2. A credit of $420 to Blackstone Company was posted as $240 in the subsidiary ledger. 3. An invoice for equipment of $4,800 was recorded as $4,000. 4. The Accounts Payable column of the purchases journal was overstated by $3,600. How will each error come to the bookkeeper's attention, other than by chance discovery?

During the current month, the following errors occurred in recording transactions in the purchases journal or in posting from it: 1. An invoice for $1,875 of supplies from Kelly Co. was recorded as having been received from Kelley Co., another supplier. 2. A credit of $420 to Blackstone Company was posted as $240 in the subsidiary ledger. 3. An invoice for equipment of $4,800 was recorded as $4,000. 4. The Accounts Payable column of the purchases journal was overstated by $3,600. How will each error come to the bookkeeper's attention, other than by chance discovery?

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 the beginning of the current period, Waterway Industries had balances in Accounts Receivable of $190,800 and in Allowance for Doubtful Accounts of $9,670 (credit). During the period, it had net credit sales of $730,800 and collections of $749,620. It wrote off as uncollectible accounts receivable of $7,511. However, a $3,339 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $23,000 at the end of the period. (Omit cost of goods sold entries.) (a) Prepare the entries to record sales and collections during the period. (b) Prepare the entry to record the write-off of uncollectible accounts during the period. (c) Prepare the entries to record the recovery of the uncollectible account during the period. (d) Prepare the entry to record bad debt expense for the period. (Credit account titles are automatically indented when…
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The total of a list of balances in Patricia Co’s receivables ledger was $643,700 on 30 September 20X9. This did not agree with the balance on Patricia Co’s receivables ledger control account. The following errors were discovered: (i) A credit balance on an individual customer’s account of $400 was incorrectly extracted as a debit balance (ii) An invoice for $3,553 was posted to the customer account as £3,535 (iii) The total of the sales returns day book was overcast by $600 What amount should be shown in Patricia Co’s statement of financial position for accounts receivable at 30 September 20X9? A. $642,918 B. $642,882 C. $644,482 D. $643,418
The bank statement for Jeffrey Co. indicates a balance of $8,785 on October 31. After the journals for October had been posted, the cash account had a balance of $8,998. a. Cash sales of $945 had been erroneously recorded in the cash receipts journal as $495. b. Deposits in transit not recorded by bank, $778. c. Bank debit memo for service charges, $40. d. Bank credit memo for note collected by bank, $23,985 plus $885 interest. e. Bank debit memo for $756 NSF (not sufficient funds) check from Calin Sams, a customer. f. Checks outstanding, $1,860. Record the appropriate journal entries that would be necessary for Jeffrey Co. Record the entry that increases cash first. If an amount box does not require an entry, leave it blank.
The cash register tape for Sheridan Industries reported sales of $27,292.00. Record the journal entry that would be necessary for each of the following situations. (a) Sales per cash register tape exceeds cash on hand by $53.50. (b) Cash on hand exceeds cash reported by cash register tape by $22.00. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.75.) No. Account Titles and Explanation Debit Credit (a) (b)
The following information applies to the questions displayed below.] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $ 14,500. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible $ 830,000 Not yet due 1.25 % 254,000 1 to 30 days past due 2.00 86,000 31 to 60 days past due 6.50 38,000 61 to 90 days past due 32.75 12,000 Over 90 days past due 68.00 2. Prepare the adjusting entry to record bad debts expense at December 31. Record the estimated ba debts. Required information 1 Record the estimated bad debts. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal
Required information. [The following information applies to the questions displayed below] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $15,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable $ 840,000 336,000 67,200 33,600 13,440 Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due Expected Percent Uncollectible 1.15% 1.90 6.40 View transaction list View journal entry worksheet 32.25 67.00 2. Prepare the adjusting entry to record bad debts expense at December 31. Note: Round percentage answers to nearest whole percent. Do not round intermediate calculations.
At the beginning of the current period, Sunland company had balances in accounts receivables of $201,900 and in Allowance for Doubtful Accounts of $9,590 (credit). During the period, it had credit sales of $875,700 and collections of $796,820. It was written off as uncollectible accounts receivable of $7,410. However, a $2,808 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $25,830 at the end of the period (Omit the cost of goods sold entries). a) Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts. b) What is the net realizable value of the receivables at the end of the period?