An inexperienced accountant for Lamont Company made the following errors in recording merchandising transactions.
1. A $220 refund to a customer for faulty merchandise was debited to Sales Revenue $220 and credited to Cash $220.
2. A $140 sales return was debited to Sales Revenue.
3. A cash payment of $30 for freight on merchandise sales was debited to Inventory $300 and credited to Cash $300.
Prepare separate correcting entries for each error, assuming that the incorrect entry is not reversed.

Question

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The Answer of An inexperienced accountant for Lamont Company made the following errors in recording merchandising transactions.
1. A $220 refund to a customer for faulty merchandise was debited to Sales Revenue $220 and credited to Cash $220.
2. A $140 sales return was debited to Sales Revenue.
3. A cash payment of $30 for freight on merchandise sales was debited to Inventory $300 and credited to Cash $300.
Prepare separate correcting entries for each error, assuming that the incorrect entry is not reversed.

An Inexperienced Accountant for Lamont Company Made the Following Errors