A company that records credit purchases in a purchases journal and records purchases returns in...
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Accounting
A company that records credit purchases in a purchases journal and records purchases returns in a general journal made the following errors. Indicate when each error should be discovered. Transaction Error 1. Made a subtraction error of $5,000 in calculating the balance of a creditor's subsidiary account. 2 3. Made an addition error of S500 in calculating the Store Supplies column of the purchases journal. Posted a purchases return to the Accounts Payable account and to the creditor's subsidiary account but did not post the purchases return to the Inventory account. Made a subtraction error of $2,000 in computing the subsidiary account balance of a creditor. Posted a purchases return to the Inventory account and to the Accounts Payable account, but mistakenly forgot to post to the subsidiary account of the creditor. 4 5
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