Blue Company made the following errors in recording merchandising transactions. This is due to an inexperienced accountant.A cash payment of OMR 20 for freight on merchandise purchases was debited to Freight-out OMR 200 and credited to Cash OMR 200.A OMR 300 refund to a customer for faulty merchandise was debited to Sales Revenue OMR 300 and credited to Cash OMR 300.A OMR 210 sales discount was debited to Sales Revenue.Instructions: Prepare separate correcting entries for each error, assuming that the incorrect entry is not reversed.

Name: Blue Company made the following errors in recording merchandising tran
Uploaded: 2024-03-20T06:32:37.000Z
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Description: Blue Company made the following errors in recording merchandising transactions. This is due to an inexperienced accountant.A cash payment of OMR 20 for freight on merchandise purchases was debited to Freight-out OMR 200 and credited to Cash OMR 200.A

The Correcting entries for each error are shown hereunder : The incorrect entries recorded earlier…

Answered: Prepare separate correcting entries for…

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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Blue Company made the following errors in recording merchandising transactions. This is due to an inexperienced accountant.

A cash payment of OMR 20 for freight on merchandise purchases was debited to Freight-out OMR 200 and credited to Cash OMR 200.
A OMR 300 refund to a customer for faulty merchandise was debited to Sales Revenue OMR 300 and credited to Cash OMR 300.
A OMR 210 sales discount was debited to Sales Revenue.

Instructions: Prepare separate correcting entries for each error, assuming that the incorrect entry is not reversed.

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