When is a correcting entry necessary


Response to the following problem:

1. What is a correcting entry?

2. When is a correcting entry necessary?

3. When an amount is journalized and posted as a debit to an incorrect expense account, why is the amount of the correcting entry debited to the correct expense account?

4. When an amount is journalized and posted as a debit to an incorrect expense account, why is the amount of the correcting entry credited to the incorrect expense account?

 

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Accounting Basics: When is a correcting entry necessary
Reference No:- TGS02946597

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