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An inexperienced accountant for Tilly Company made the following errors in recording merchandising transactions.
1. A $270 refund to a customer for faulty merchandise was debited to Sales Revenue $270 and credited to Cash $270.
2. A $310 credit purchase of supplies was debited to Inventory $310 and credited to Cash $310.
3. A $190 sales return was debited to Sales Revenue.
4. A cash payment of $40 for freight on merchandise purchases was debited to Freight-Out $400 and credited to Cash $400.
Instructions
Prepare separate correcting entries for each error, assuming that the incorrect entry is not reversed. (Omit explanations.)
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