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An inexperienced accountant for Blaufuss Company made the following errors in recording merchandising transactions.
1. A $175 refund to a customer for faulty merchandise was debited to Sales $175 and credited to Cash $175.
2. A $180 credit purchase of supplies was debited to Merchandise Inventory $180 and credited to Cash $180.
3. A $110 sales discount was debited to Sales.
4. A cash payment of $20 for freight on merchandise purchases was debited to Freight-out $200 and credited to Cash $200.
Instructions
Prepare separate correcting entries for each error, assuming that the incorrect entry is not reversed. (Omit explanations.)
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