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[Solved]: Gray Company has employed a bookkeeper who is inex
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(Solved): Gray Company has employed a bookkeeper who is inexperienced. On December 30, after reviewing the rec ...



Gray Company has employed a bookkeeper who is inexperienced. On December 30, after reviewing the records for the year, you discover the following error. On May 1, Gray Company purchased Supplies on account, $940. The bookkeeper recorded this by debiting Supplies Expense for $490 and crediting Cash for $490. Note: Assume that it is the company's policy to record the purchase of supplies in the Supplies account. Required: Prepare a correcting entry on December 30. Make sure to enter the day for each separate transaction.



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