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jenny has recorded the following journal entry:
Dr Purchase $1500
Cr Stationery $1500what is the correct narrative for jenny’s journal entry?
A. being cash purchase of Stationery
B. being credit purchase of Stationery
C. Being correction of error- purchase originally recorded as stationery
D. Being correction of error- Stationery originally recorded as purchase.The given ans is c. But, i think c and d can be correct ans. Please let me know why d is incorrect.
The correct answer is C. We are presumably increasing the expenses called Purchases and decreasing the expense called Stationery.
With respect to D, if stationery had been recorded as a purchasae, the correcting entry would be to increase stationery and decrease purchases ie Cr Purchases, Dr Stationery.
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