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APPLICATION PROBLEM Journalizing correcting entries The following errors were discovered after the incorrect entries were already journalized and 4-4 posted. Transactions: Apr. 1. Discovered that a transaction for utilities expense was journalized and posted in error as a debit to Repairs Expense instead of Utilities Expense, $265.00. M66. 5. Discovered that a cash investment by Manuel Ricardo, owner, was journalized and posted in error as a credit to Sales instead of Manuel Ricardo, Capital, $600.00. M67 Instructions: Journalize each correcting entry discovered during April of the current year. Use page 7 of the journal given below

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Date		Accounts title	Doc no		General		Sales	Cash
					Debit	Credit	Credit	Debit	Credit
April	1	Utilities expense	M66		$ 265.00
		Repairs expense				$ 265.00
	5	Manuel Ricardo, Capital			$ 600.00
		Sales [Revenue]				$ 600.00	$ 600.00

--April 1:
Repairs expenses got debited by mistake, hence in correcting entry it will be credited (as shown above).
Utilities expenses should have been debited, but was not, hence the same is debited in correcting entry (as shown above).

--April 5:
Capital account should not have been credited. To correct this, the same has to be debited (as done above).
Sales should have been credited, but was not, hence the same is credited.

--No error related to Cash account and so same is left blank.