Handy Company Uses Both Special Journals and a General Journal

question 61

Essay

Handy 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 $2,690; it should have been $2,790.
2. A remittance of $400 from Don Ford was correctly recorded in the cash receipts journal, but the amount was posted incorrectly to the account of customer Dan Fort in the subsidiary ledger.
3. A purchase of merchandise on account from Harry Company for $1,000 was incorrectly entered in the purchases journal at $10,000.
4. In the sales journal, the entries were incorrectly added for the month. The monthly total was listed as $24,820; it should have been $24,280.
Instructions
Indicate how each of the above errors might be discovered.

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Definitions:

Social Loafing

The phenomenon where individuals put forth less effort when working in a group compared to when working alone.

Implicit Association Test (IAT)

A psychological assessment tool that measures the strength of association between concepts in a person's mind, revealing unconscious biases.

Unconscious Attitudes

Implicit attitudes or beliefs that influence behavior and perception without conscious awareness.

Implicit Association Test (IAT)

A psychological assessment method that aims to reveal unconscious or hidden biases and attitudes by measuring the speed of associations between concepts.