During the current month, the following errors occurred in recording transactions in the purchases journal or in posting from it: a. An invoice for $1,875 of supplies from Kelly Co. was recorded as having been received from Kelley Co., another supplier.b. A credit of $420 to Blackstone Company was posted as $240 in the subsidiary ledger.c. An invoice for equipment of $4,800 was recorded as $4,000.d. The Accounts Payable column of the purchases journal was overstated by $3,600.How will each error come to the bookkeeper’s attention, other than by chance discovery?
During the current month, the following errors occurred in recording transactions in the purchases journal or in posting from it: a. An invoice for $1,875 of supplies from Kelly Co. was recorded as having been received from Kelley Co., another supplier.b. A credit of $420 to Blackstone Company was posted as $240 in the subsidiary ledger.c. An invoice for equipment of $4,800 was recorded as $4,000.d. The Accounts Payable column of the purchases journal was overstated by $3,600.How will each error come to the bookkeeper’s attention, other than by chance discovery?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During the current month, the following errors occurred in recording transactions in the purchases journal or in posting from it:
a. An invoice for $1,875 of supplies from Kelly Co. was recorded as having been received from Kelley Co., another supplier.
b. A credit of $420 to Blackstone Company was posted as $240 in the subsidiary ledger.
c. An invoice for equipment of $4,800 was recorded as $4,000.
d. The Accounts Payable column of the purchases journal was overstated by $3,600.
How will each error come to the bookkeeper’s attention, other than by chance discovery?
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