Working It Out Ann Kerrigan mistakenly recorded the collection of a $1,000 receivable as a debit to Cash and a credit to Service Revenue for $1,000. 1. Prepare the correcting entry. 2. Assume that Kerrigan's net income before the correction was $26,000. How much is her corrected net income?
Working It Out Ann Kerrigan mistakenly recorded the collection of a $1,000 receivable as a debit to Cash and a credit to Service Revenue for $1,000. 1. Prepare the correcting entry. 2. Assume that Kerrigan's net income before the correction was $26,000. How much is her corrected net income?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter5: Sales And Receivables
Section: Chapter Questions
Problem 72E
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Working It Out
Ann Kerrigan mistakenly recorded the collection of a $1,000 receivable as a debit to Cash and a credit to Service Revenue for $1,000. 1. Prepare the correcting entry. 2. Assume that Kerrigan's net income before the correction was $26,000. How much is her corrected net income?
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