for Merchandising Operations E5-11 An inexperienced accountant for Stahr Company

Question

for Merchandising Operations E5-11 An inexperienced accountant for Stahr Company made the following errors in recording merchandising transactions. es for 1. A $210 refund to a customer for faulty merchandise was debited to Sales Revenue $210 and credited to Cash $210 2. A $180 credit purchase of supplies was debited to Inventory $180 and credited to Cash $180. 3. A $215 sales discount was debited to Sales Revenue. 4. A cash payment of $20 for freight on merchandise purchases was debited to Freight- teele Out $200 and credited to Cash $200. Instructions Prepare sepa reversed. (Omit explanations.) rate correcting entries for each error, assuming that the incorrect entry is not ES-12 In 2017, Laquen Company had net sales of $900,000 and cost of goods sold of $522,000. Operating expenses were $225,000, and interest expense was $11,000. Laquen prepares a multiple-step income statement. Instructions (a) Compute Laquen's gross prof (b) Compute the

Explanation / Answer

Correction journal entries Event Account Titles Debit Credit 1 Sales returns $210.00 Sales Revenue $210.00 2 Supplies $180.00 Cash $180.00 Inventory $180.00 Accounts Payable $180.00 3 Discount Allowed $215.00 Sales Revenue $215.00 4 Freight- In $20.00 Cash $180.00 Freight - out $200.00

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