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As the full-time bookkeeper, your job is to make sure all transactions are recorded properly. If there is an error, each correction needs the reason for the change and the effect on each account, whether it is an increase or decrease.
1. What are some examples of transactions that would need to be recorded or journalized?
2. Can you provide an example of a transaction and the journal entry from either Chapter 2 of our textbook or from your current employer?
3. Why is it important to accurately record the transaction you selected?
4. Suppose a co-worker has recorded a cash receipt twice and wants you to record a correcting entry that will reverse the mistakes. The correcting entry will record a credit to the Cash account and a debit to the Sales account. Your co-worker has offered to buy you dinner for fixing this mistake.
5. What should you investigate before making a decision about the correcting entry? What is happening to the Cash account? Would you accept a dinner offer from your co-worker for fixing the mistake?
