Question

QUESTION This fact pattern provides information only for Q#22. Jackson was founded on September 1, Year 1. On that same date, Jackson bought supplies for $9,000 cash. Later in Year 1, Jackson bought $10,000 supplies on account. The firm's untrained bookkeepers recorded both transactions as debits (increases) in Supplies Expense when purchased. At December 31, Year 1, all of Jackson's employees failed to consider the $2,800 of Supplies on hand. You have discovered any mistakes that may have been made in determining Click Save and Submit to save and submit. Click Save All Answers to save all answers 888 A Lepa $ 4 % 5 & 7 & 옥 * o 6 9 E R T Y U 2 F G I J K c с V B N. M М.

Answer 1

The recording of both the transactions as debits (increase) in Supplies expenses is correct.

Only the failure of not considering $2800 of supplies on hand would have reduced the income as it is shown at the credit side of Trading Account. The correction of the same will increase the income by $2800.