Question

1. a $375 purchase of supplies on account was recorded by debiting supplies for $375 and crediting cash for $375. what is the journal entry needed to correct this error?

Explanation:

Step1: Analyze the error

The purchase was on - account but cash was credited instead of accounts payable.

Step2: Determine the correcting entry

We need to reverse the incorrect credit to cash and credit accounts payable.
Debit Cash $375
Credit Accounts Payable $375

Answer:

Debit: Cash $375
Credit: Accounts Payable $375