On march 1, it was discovered that the following errors took place in journalizing and posting transactions: a. rent expense of $4,650 paid for the current month was recorded as a debit to miscellaneous expense and a credit to rent expense. b. the payment of $3,700 from a customer on account was recorded as a debit to cash and a credit to accounts payable.

Rent expenbse         4,650 debit

Miscellaneous expense 4,650 credit

--to reverse the mistaken entry--

Rent expense 4,650 debit

           Cash                4,650 credit

--to record the correct entry--

Account Pyable  3,700 debit

   Accounts Receivables        3,700 credit

--to ammend mistaken entry--

Explanation:

We have two approachs to solve for accoutning mistakes, the first is to reverse the incorrect entry and then record the entry in a proper manner.

(like on A)

The second method is to do adjustment to fix it like on b

the mistake was to use accounts payable therefore, we write-off that and credit the correct account which is accoutns receivables

answer; ///decision making under risk;

answer founder's agreement;