An inexperienced accountant for Lamont Company made the following errors in recording merchandising transactions.
1. A $130 credit purchase of supplies was debited to Inventory $130 and credited to Cash $130.
2. A cash payment of $30 for freight on merchandise purchases was debited to Freight-Out $300 and credited to Cash $300.
Instructions
Prepare separate correcting entries for each error, assuming that the incorrect entry is not reversed. (Omit explanations.)

Question

Quizplus · Accepted Answer

The Answer of An inexperienced accountant for Lamont Company made the following errors in recording merchandising transactions.
1. A $130 credit purchase of supplies was debited to Inventory $130 and credited to Cash $130.
2. A cash payment of $30 for freight on merchandise purchases was debited to Freight-Out $300 and credited to Cash $300.
Instructions
Prepare separate correcting entries for each error, assuming that the incorrect entry is not reversed. (Omit explanations.)

An Inexperienced Accountant for Lamont Company Made the Following Errors