THE FOLLOWING ERRORS WERE DISCOVERED IN THE YEAR OF ERROR BEFORE THE BOOKS WERE CLOSED. REVIEW THE FACTS AND ANSWER THE

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The Following Errors Were Discovered In The Year Of Error Before The Books Were Closed Review The Facts And Answer The 1 (48.19 KiB) Viewed 53 times

The Following Errors Were Discovered In The Year Of Error Before The Books Were Closed Review The Facts And Answer The 2 (21.86 KiB) Viewed 53 times

THE FOLLOWING ERRORS WERE DISCOVERED IN THE YEAR OF ERROR BEFORE THE BOOKS WERE CLOSED. REVIEW THE FACTS AND ANSWER THE QUESTIONS RELATED TO EACH FACT PATTERN. Error #1 In 20X2 Motown paid off an Accounts Payable balance and inadvertently credited Accounts Receivable. The entry was recorded incorrectly as follow: Cash paid to satisfy Accounts Payable S 21.000 Error discovered in 20x2 before the books are closed. IGNORE INCOME TAXES. Original entry was as follows in 20X2: Accounts Payable $ 21,000 Accounts Receivable $ 21,000 12.) The 20x2 required correcting journal entry has what NET impact on the asset section of the balance sheet. Do not consider liabilities or equity, just the asset section A. Increase B. Decrease C. No impact Page 4 of 7 Error #2 In 20x2 Rock Corp inadvertently recorded a decrease to the Allowance for Bad Debts as an increase to the Allowance for Bad Debts. Required decrease to Allowance for Bad Debts 22,410 Error discovered in 20x2 before the books are closed. IGNORE INCOME TAXES. Original entry was as follows in 20X2: Bad Debt Expense $ 22,410 Allowance for Bad Debts $ 22.410 13.) The required correcting journal entry in 20X2 is as follow: A. Debit Bad Debt Expense and credit the Allowance for Doubtful Accounts for $22.410 B. Debit Bad Debt Expense and Credit the Allowance for Doubtful Accounts for $44.820 C. Debit The Allowance for Doubtful Accounts and Credit Bad Debt Expense for $44,820 D. Debit The Allowance for Doubtful Accounts and Credit Bad Debt Expense for $22.410

Error #3 In 20X2 Motown consumed some of their prepaid supplies and inadvertently credited Cash. The entry was recorded incorrectly as follow: 58,900 Amount of prepaid supplies consumed in 20x2 Error discovered in 20x2 before the books are closed, IGNORE INCOME TAXES. Original entry was as follows in 20X2: Supplies Expense $ 58,900 Cash $ 58,900 Page 5 of 7 14.) The 20x2 required correcting journal entry has what impact on Cash? A. Increase 58,900 B. Decrease 58.900 C. Increase 58,900 D. Decrease 58,900 E. No impact