An inexperienced accountant for Leyland Company made the following errors in recording merchandising transactions.
1. A $225 refund to a customer for faulty merchandise was debited to Sales $225 and credited to Cash $225.
2. A $280 credit purchase of supplies was debited to Merchandise Inventory $280 and credited to Cash $280.
3. A $160 sales return was debited to Sales.
4. 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 Leyland Company made the following errors in recording merchandising transactions.
1. A $225 refund to a customer for faulty merchandise was debited to Sales $225 and credited to Cash $225.
2. A $280 credit purchase of supplies was debited to Merchandise Inventory $280 and credited to Cash $280.
3. A $160 sales return was debited to Sales.
4. 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 Leyland Company Made the Following Errors