The following errors were found in the books of Rosco Consulting during the month: 1. Consultancy Service provided to Briggs Safety on account for $1500 had been omitted completely from the books. 2. A purchase of supplies for $1000 was entered in the cash account but omitted from the supplies account 3. Motor Vehicle purchased for $129,000 cash was entered in the books as $1290. 4. Drawings of $1000 were recorded as $100. 5. A gas bill for $500 was entered in the motor vehicle account Required: i. Record the journal entries necessary to correct each of the errors.
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
The following errors were found in the books of Rosco Consulting during the month:
1. Consultancy Service provided to Briggs Safety on account for $1500 had been
omitted completely from the books.
2. A purchase of supplies for $1000 was entered in the cash account but omitted from
the supplies account
3. Motor Vehicle purchased for $129,000 cash was entered in the books as $1290.
4. Drawings of $1000 were recorded as $100.
5. A gas bill for $500 was entered in the motor vehicle account
Required:
i. Record the
Journal entries are the entries to be recorded in the accounting books of the company for all the business transactions occurred in a particular period.
Step by step
Solved in 2 steps with 1 images
