Ridge Properties Discovered the Following Errors Made in January 2014

question 70

Essay

Ridge Properties discovered the following errors made in January 2014. Prepare the necessary correcting entry for each of the following.
a. A collection on account of €570 from a customer was credited to Accounts Receivable €750 and debited to Cash €750.
b. The purchase of supplies on account for €250 was recorded as a debit to Equipment €250 and a credit to Accounts Payable €250.

---

Definitions:

Sub-accounts

Secondary accounts nested under a primary account, used for more granular management of finances.

Run Report

The process of generating a summary of data or statistics, typically from a database or software application.

Edit Selection

A feature or function in software that allows users to choose specific portions of text or data to modify or manipulate.

COA

Chart of Accounts, a list of a company's accounts and their account numbers that identifies where transactions are recorded in the financial statements.