Question

The ruling method can be used if an error is discovered before or after an entry...

The ruling method can be used if an error is discovered before or after an entry was posted. A line is drawn through the incorrect account title or amount and the correct account title or amount written immediately above. The person making the correction also includes his or her initials with the correction.

The correcting entry method is used if an error is discovered after an incorrectly journalized entry was posted. If the error consists of the wrong account(s), an entry is made to cancel out or reverse the incorrect account(s) and insert the correct account(s). The correcting entry must include an explanation.

On May 10, a $170 payment for Advertising Expense was incorrectly journalized and posted as a debit to Travel Expense for $170 and a credit to cash for $170. Provide the correcting entry following the one-step method.

GENERAL JOURNAL
DATE DESCRIPTION POST. REF. DEBIT CREDIT
20--
May 10
      
To correct May 10 error in which incorrect expense was debited.
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Answer #1
GENERAL JOURNAL
DATE DESCRIPTION POST. REF. DEBIT CREDIT
20--
May 10 Advertising expense $170
Travel expense $170
To correct May 10 error in which incorrect expense was debited.
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