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The bookkeeper of Barbara made the following mistakes:
Discounts allowed $3,840 was credited to the discounts received account
Discounts received $2,960 was debited to the discounts allowed accountWhich journal entry will correct the errors?
DR CRA- Discounts allowed $7,680
Discounts received $5,920
Suspense account $1,760B- Discounts allowed $880
Discounts received $880
Suspense account $1,760C- Discounts allowed $6,800
Discounts received $6,800D- Discounts allowed $3,840
Discounts received $2,960
Suspense account $880Sir I got A but the answer is B, im confused
S
Discounts allowed were credited to discounts received.
They should not appear in discounts received,
so……Dr Discounts received to remove them.They should be debited to discounts allowed, and have not been,
so……Dr Discounts allowedDiscounts received were debited to discounts allowed.
They would not appear in discounts allowed
so…..Cr Discounts allowed to remove themThey should appear in discounted received, and have not been
so….Cr Discounts receivedYou will find that the net effect of all of the above will give the correct answer 🙂
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