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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?

    © BrainMass Inc. brainmass.com October 9, 2019, 5:56 pm ad1c9bdddf
    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