Problem

A company that records credit purchases in a purchases journal and records purchases ret...

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.

1. Made an addition error in determining the balance of a creditor’s subsidiary account.

2. Made an addition error in totaling the Office Supplies column of the purchases journal.

3. 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.

4. Posted a purchases return to the Inventory account and to the Accounts Payable account but did not

post to the creditor’s subsidiary account.

5. Correctly recorded a $4,000 purchase in the purchases journal but posted it to the creditor’s subsidiary

account as a $400 purchase.

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