Accounting for Merchandising Operations

1. A $210 refund to a customer for faulty merchandise was debited to Sales revenue $210 and credited to Cash $210.
2. A $180 credit purchase of supplies was debited to inventory $180 and credited to Cash $180.
3. A $215 sales discount was debited to Sales Revenue
4. A cash payment of $20 for freight on merchandise purchase was debited to Freight-out $200 and credited to Cash $200

Instructions

Prepare separate correcting entries for each error, assuming that the incorrect entry is not reversed. (Omit explanations.)

Solution