David has extracted a trial balance and created a suspense account with a credit balance of $1,520 to make it balance.
David found the following:
- A sales invoice for $9,140 has not been entered in the accounting records.
- A payment of $3,024 has been posted correctly to the payables control account but no other entry has been made.
- A credit sale of $264 has only been credited to the sales account.
What is the remaining balance on the suspense account after these errors have been corrected?
Answer
| SUSPENSE ACCOUNT | |||
| $ | $ | ||
| Cash | 3,024 | Bal b/f | 1,520 |
| Receivables | 264 | ||
| Bal c/f | 1,240 | ||
| 3,024 | 3,024 | ||
Adjusting Entry
Dr. Suspense Account…..3,024
Cr. Cash………………………………….3,024
Dr. Receivable …………..264
Cr. Suspense Account……………….264