White Company has employed a bookkeeper who is inexperienced. On December 27, after reviewing the records for the year, you discover the following error.
On May 1, White Company purchased Supplies on account, $590. The bookkeeper recorded this by debiting Supplies Expense for $950 and crediting Cash for $950.
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 27. Make sure to enter the day for each separate transaction.