Manheim 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 $2300; it should have been $2570.
2. A remittance of $300 from Jim Beyheim was correctly recorded in the cash receipts journal but the amount was posted incorrectly to the account of customer James Baylor in the subsidiary ledger.
3. A purchase of merchandise on account from Henry Company for $2500 was incorrectly entered in the purchases journal at $25000.
4. In the sales journal the entries were incorrectly added for the month. The monthly total was listed as $29240; it should have been $29420.
Instructions
Indicate how each of the above errors might be discovered.

Question

Quizplus · Accepted Answer

The Answer of Manheim 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 $2300; it should have been $2570.
2. A remittance of $300 from Jim Beyheim was correctly recorded in the cash receipts journal but the amount was posted incorrectly to the account of customer James Baylor in the subsidiary ledger.
3. A purchase of merchandise on account from Henry Company for $2500 was incorrectly entered in the purchases journal at $25000.
4. In the sales journal the entries were incorrectly added for the month. The monthly total was listed as $29240; it should have been $29420.
Instructions
Indicate how each of the above errors might be discovered.

Manheim Company Uses Both Special Journals and a General Journal