In Year 5, CPAS working for Adams Accounting Services recently conducted an audit of the financial statements for Ultimate Home Decor for the last fiscal year, Year 4. During this engagement, they discovered that an accountant working for Ultimate had credited the wrong account in Year 4 when using the pulldown menus in their general ledger accounting software. They debited "Sales salaries payable" for $444 when they should have debited "Sales expense." Since Year 4 accounting records were previously closed on December 31, Year 4, how will Ultimate adjust their accounting records for this error in Year 5? Select one: O a. Debit Retained earnings for $444 and Credit Sales salaries payable for $444 O b. Do nothing; error is counterbalancing O c. Debit Sales revenue for $444 and Credit Retained earnings for $444 O d. Debit Sales salaries payable for $444 and Credit Retained earnings for $444

In Year 5, CPAS working for Adams Accounting Services recently conducted an audit of the financial statements for Ultimate Home Decor for the last fiscal year, Year 4. During this engagement, they discovered that an accountant working for Ultimate had credited the wrong account in Year 4 when using the pulldown menus in their general ledger accounting software. They debited "Sales salaries payable" for $444 when they should have debited "Sales expense." Since Year 4 accounting records were previously closed on December 31, Year 4, how will Ultimate adjust their accounting records for this error in Year 5? Select one: O a. Debit Retained earnings for $444 and Credit Sales salaries payable for $444 O b. Do nothing; error is counterbalancing O c. Debit Sales revenue for $444 and Credit Retained earnings for $444 O d. Debit Sales salaries payable for $444 and Credit Retained earnings for $444

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 43P

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Please answer correctly no. 29 and provide computation. Thank you:)