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Accounting Errors

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A company uses both special journals and a general journal. The company accountant made the following errors during July.

1. Incorrectly added the credit entries in a customer's account in the accounts receivable subsidiary ledger. The total was listed as $2,690; it should have been $2,790.

2. A remittance of $400 from Don Short was correctly recorded in the cash receipts journal, but the amount was posted incorrectly to the account of customer Bill Short in the subsidiary ledger.

3. A purchase of merchandise on account from Eaton Company for $1,000 was incorrectly entered in the purchases journal at $10,000.

4. In the sales journal, the entries were incorrectly added for the month. The monthly total was listed as $24,820; it should have been $24,280.

How might each of the above errors be discovered?

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https://brainmass.com/business/correcting-accounting-errors/72780

Solution Preview

Hi there,

The errors that were mentioned may have been discovered in the following manner:

1. The incorrect entry relating to the A/R error would be discovered when comparing individual sales ...

$2.19
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Principles of Accounting: E1-1, E1-5, E1-12, E1-13, E2-2, E2-3, E7-3

Prepare written answers to the following assignments from the text, Financial Accounting 6th ed:
a. Chapter 1:
1) Exercise E1-1
2) Exercise E1-5
3) Exercise E1-12
4) Exercise E1-13

b. Chapter 2:
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2) Exercise E2-3

c. Chapter 7:
Exercise E7-3

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