4. a $375 purchase of supplies on account was recorded by debiting supplies for $375 and crediting cash for…
4. a $375 purchase of supplies on account was recorded by debiting supplies for $375 and crediting cash for $375. what is the journal entry needed to correct this error?
Answer
Explanation:
Step1: Analyze the error
The purchase was on - account but cash was credited instead of accounts payable.
Step2: Determine the correcting entry
We need to reverse the incorrect credit to cash and credit accounts payable. Debit Cash $375 Credit Accounts Payable $375
Answer:
Debit: Cash $375 Credit: Accounts Payable $375