The following errors took place in journalizing and posting transactions: a. Cash of $8,800 received on account was recorded as a debit to Fees Earned and a credit to Cash.

The following errors took place in journalizing and posting transactions:

a. Cash of $8,800 received on account was recorded as a debit to Fees Earned and a credit to Cash.

b. A $1,760 purchase of supplies for cash was recorded as a debit to Supplies Expense and a credit to Accounts Payable.

Journalize the entries to correct the errors. Omit explanations.


Answer:

The correction could be made with one or two entries as shown below.
a. Cash17,600         
Fees Earned8,800           
Accounts Receivable8,800           
or (reverses original entry)
Cash8,800           
Fees8,800           
Cash8,800           
Accounts Receivable8,800           
b. Accounts Payable*1,760           
Supplies Expense1,760           
Supplies1,760           
Cash1,760           
* The first entry reverses the original entry. The second entry is the entry that should 
have been made initially.