Question

On March 8, Monty Candy Company bought supplies on account from the Arcade Fire Company for $664. Monty Candy Company incorrectly debited Equipment for $600 and credited Accounts Payable for $600. The entries have been posted to the ledger. the correcting entry should be _________.

Answer 1

Answer:

Correcting Entry

March 8         Dr.       Cr.

Supplies     $664

Equipment             $600

Account Payable   $64

Explanation:

Entry Should be

March 8         Dr.       Cr.

Supplies     $664

Account Payable  $664

Entry Recorded

March 8         Dr.       Cr.

Equipment  $600

Account Payable  $600

Firs error is amount recorded as $600 rather $664 and the second is account of equipment debited rather the account of Supplies Inventory.