Following Is a List of Errors Made During the Posting

question 74

Short Answer

Following is a list of errors made during the posting process. Indicate the exact dollar impact each error would have on (1)total revenue, (2)total expenses, and (3)net income.
a)A $100 debit to rent expense was posted as a $300 debit to rent expense.
b)A $700 credit to service revenue was credited at $70 instead
c)A $2,000 debit to the withdrawals account was posted as a $2,000 debit to revenue.
d)A $1,500 debit to the salary expense account was debited to rent expense account.
e)A $3,000 debit to the equipment account was debited to an expense account instead. $\begin{array} { | l | l | l | l | } \hline \text { Error } & \text { Revenue } & \text { Expenses } & \text { Net Income } \\\hline \text { a) } & & & \\\hline \text { b) } & & & \\\hline \text { c) } & & & \\\hline \text { d) } & & & \\\hline \text { e) } & & & \\\hline\end{array}$

---

Definitions:

EMV

Expected Monetary Value; a statistical technique in decision-making that calculates the average outcome when the future includes scenarios that may or may not happen.

Decision Tree Construction

The process of building a graphical representation of decisions and their possible consequences, outcomes, and related costs.

Capacity Decision

The process of determining the level of capacity needed to meet varying demands for a business's goods or services.

Demand Forecast

The process of estimating the future demand for a product or service based on historical data and trends.