For each of the following situations, indicate whether itrepresents an accounting error and explain why it is or isnot an error. Also state whether a trial balance would indicate that an error exists for each situation.b. Revenue was recognized when a customer purchased agift card for future use.

Q: How is a correction of an accounting error made?

A: Accounting error:   It is a non-fraudulent discrepancy in the financial documents of an…

Q: MENT 2: The process of analyzing subsidiary ledger acounts of accounts receivable to ine those…

A: Answer: Concept: Audit is performed with proper verification and compliance tests.

Q: .   c.   completeness of receivables.   d.  collectibility of the invoices.

A: The four qualities of a confirmation are as follows: Receipt. Responses can be written or spoken.…

Q: Credit memos are manually applied to customer balances Select one: a. on the Receive payment form b.…

A: A credit memo, short for credit memorandum, is a document issued by a seller to a buyer, informing…

Q: For each of the tests of controls for sales and receivables, indicate the assertion that is…

A: Sales invoices refer to the those paper documents which act as a proof for a sales transaction…

Q: Current Attempt in Progress For each of the following accounts, indicate the effect of a debit or a…

A: Assets have debit balance while liabilities and equity have credit balance.The increase in the…

Q: Posting errors are identified in the following table. In column (1), enter the amount of the…

A: 1Here's the completed table with your requested information:Description of Posting Error (1)…

Q: Explain why the ledger can still contain errors even through the trial balance is in balance. Give…

A: Trial balance: Trial balance is a summary of all the asset, liability, and equity accounts and their…

Q: Explain how each of the following posting errors affects a trial balance. State whether the trial…

A: (a).              If $900 is credited to service revenue instead of unearned revenue then it would…

Q: What transaction requires an adjusting entry debit to unearned revenue

A: Adjusting Entries: Adjusting entries are those which are recorded at the end of the accounting year.…

Q: Revenue is properly recognized:  (Hint: What is Revenue Recognition principle?) Group of answer…

A: Introduction: Revenue Recognition Principle: According to the revenue recognition principle ,…

Q: how is the trial balance used to discover errors

A: A trial balance is an important accounting technique for ensuring the correctness of financial data…

Q: 21. The A/R subledger is updated in each of the following situations EXCEPT when we: a. Record a…

A: A/R sub ledger means accounts receivable sub ledger which includes the details of those customers…

Q: 7. To locate an error in a trial balance, a. look for the correct location of normal balances. b.…

A: SOLUTION TRAIL BALANCE IS A LIST OF ALL GENERAL LEDGER ACCOUNTS CONTAINED IN THE LEDGER OF A…

Q: What does a negative amount on the Accounts Payable Aging report indicate? O A miscoded expense O An…

A: An accounts payable aging report is a financial document that provides a detailed breakdown of a…

Q: A revenue account is closed by debiting Income Summary and crediting Service Revenue. True or False

A: A major step in the accounting cycle that must not be skipped by any company is the closing process.…