Kash Company is reviewing its December 31, 2020 unadjusted trial balance and determines that a sale...

Kash Company is reviewing its December 31, 2020 unadjusted trial balance and determines that a sale in the amount of $15,000 had been incorrectly recorded as a debit to sales and a credit to accounts receivables. The correcting journal entry at December 31, 2020 is:

Debit accounts receivables and credit sales $30,000

Debit accounts receivables and credit retained earnings $30,000

Debit retained earnings and credit sales $15,000

Debit accounts receivables and credit sales $15,000

Solutions

Expert Solution

The correct answer is A "Debit accounts receivables and credit sales $30,000"

Entry which should have been passed:

Accounts receivable Dr. 15,000

To sales 15,000

Entry which was passed:

Sales Dr. 15,000

To accounts receivables 15,000

Thus, to nullify the effect of wrong entry and then to pass the correct entry, the reversal entry will be by $30,000

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

The unadjusted trial balance of Imagine Ltd., a private company following ASPE, at December 31, 2020...

The unadjusted trial balance of Imagine Ltd., a private company following ASPE, at December 31, 2020 is as follows: Debit Credit Cash $10,850 Accounts receivable 56,500 Allowance for doubtful accounts $750 FV-NI investments 8,600 Inventory 58,000 Prepaid insurance 2,940 Prepaid rent 13,200 FV-OCI investments 14,000 Bond investment at amortized cost 18,000 Land 10,000 Equipment 104,000 Accumulated depreciation—equipment 18,000 Accounts payable 9,310 Bonds payable 50,000 Common shares 100,000 Retained earnings 103,260 Sales revenue 223,310 Rent revenue 10,200 Purchases 170,000 Purchase discounts...

The following list of accounts is taken from the December 31, 2020, unadjusted trial balance of...

The following list of accounts is taken from the December 31, 2020, unadjusted trial balance of Perdu Sales, a business that is owned by Eldon Perdu. Debit Credit Cash $ 8,000 Merchandise inventory 9,800 Prepaid selling expense 8,000 Store equipment 40,000 Accumulated depreciation, store equipment $ 9,800 Accounts payable 14,840 Salaries payable 0 Eldon Perdu, capital 25,360 Eldon Perdu, withdrawals 3,600 Sales 858,000 Sales returns and allowances 33,000 Sales discounts 8,000 Cost of goods sold 431,000 Sales salaries expense 94,000...

The unadjusted trial balance of the Manufacturing Equitable at December 31, 2016, the end of its...

The unadjusted trial balance of the Manufacturing Equitable at December 31, 2016, the end of its fiscal year, included the following account balances. Manufacturing’s 2016 financial statements were issued on April 1, 2017. Accounts receivable $ 102,500 Accounts payable 39,400 Bank notes payable 614,000 Mortgage note payable 1,294,000 Other information: a. The bank notes, issued August 1, 2016, are due on July 31, 2017, and pay interest at a rate of 12%, payable at maturity. b. The mortgage note is...

The unadjusted trial balance of the Manufacturing Equitable at December 31, 2021, the end of its...

The unadjusted trial balance of the Manufacturing Equitable at December 31, 2021, the end of its fiscal year, included the following account balances. Manufacturing’s 2021 financial statements were issued on April 1, 2022. Accounts receivable $ 93,000 Accounts payable 45,000 12% notes, payable to bank 675,000 Mortgage note payable 1,346,000 Other information: The bank notes, issued August 1, 2021, are due on July 31, 2022, and pay interest at a rate of 12%, payable at maturity. The mortgage...

The unadjusted trial balance of the Manufacturing Equitable at December 31, 2021, the end of its...

The unadjusted trial balance of the Manufacturing Equitable at December 31, 2013, the end of its...

The unadjusted trial balance of the Manufacturing Equitable at December 31, 2013, the end of its fiscal year, included the following account balances. Manufacturing’s 2013 financial statements were issued on April 1, 2014. Accounts receivable $ 99,000 Accounts payable 35,400 Bank notes payable 698,000 Mortgage note payable 1,315,000 Other information: a. The bank notes, issued August 1, 2013, are due on July 31, 2014, and pay interest at a rate of 12%, payable at maturity. b. The mortgage note...

The unadjusted trial balance of the Manufacturing Equitable at December 31, 2018, the end of its...

The unadjusted trial balance of the Manufacturing Equitable at December 31, 2018, the end of its fiscal year, included the following account balances. Manufacturing’s 2018 financial statements were issued on April 1, 2019. Accounts receivable $ 95,750 Accounts payable 37,600 Bank notes payable 667,000 Mortgage note payable 1,442,000 Other information: The bank notes, issued August 1, 2018, are due on July 31, 2019, and pay interest at a rate of 12%, payable at maturity. The mortgage note is due on...

The unadjusted trial balance of the Manufacturing Equitable at December 31, 2018, the end of its...

The unadjusted trial balance of the Manufacturing Equitable at December 31, 2018, the end of its fiscal year, included the following account balances. Manufacturing’s 2018 financial statements were issued on April 1, 2019. Accounts receivable $ 99,000 Accounts payable 35,400 Bank notes payable 698,000 Mortgage note payable 1,315,000 Other information: The bank notes, issued August 1, 2018, are due on July 31, 2019, and pay interest at a rate of 12%, payable at maturity. The mortgage note is due on...

The unadjusted trial balance of the Manufacturing Equitable at December 31, 2018, the end of its...

The unadjusted trial balance of the Manufacturing Equitable at December 31, 2018, the end of its fiscal year, included the following account balances. Manufacturings 2018 financial statements were issued on April 1, 2019 Accounts receivable $ 95250 Accounts payable 42800 Bank notes payable 601000 Mortgage note payable 1,490,00 Other information a. The bank notes, issued August 1, 2018, are due on July 31, 2019, and pay interest at a rate of 12%, payable at maturity. b.The mortgage note is due...

The unadjusted trial balance of the Manufacturing Equitable at December 31, 2018, the end of its...

The unadjusted trial balance of the Manufacturing Equitable at December 31, 2018, the end of its fiscal year, included the following account balances. Manufacturing’s 2018 financial statements were issued on April 1, 2019. Accounts receivable $ 102,500 Accounts payable 39,400 Bank notes payable 614,000 Mortgage note payable 1,294,000 Other information: The bank notes, issued August 1, 2018, are due on July 31, 2019, and pay interest at a rate of 12%, payable at maturity. The mortgage note is due on...

Subjects