What are the journal entries to correct the following errors?
1. Omission from trial balance on the insurance expense $306.
2. Discount allowed $306 debited in error to discount received account
3. No entries made in the records for cash sales totalling $306
4. The returns outwards total of $306 was included in the trial balance as a credit balance.
Suggested Solution:
| 1 | Debit | Insurance | 306 | Credit | Suspense | 306 |
| 2 | Debit | Discount allowed | 306 | Credit | Discount received | 306 |
| 3 | Debit | Cash | 306 | Credit | Cash sales | 306 |
| 4 | Debit | Returns outwards | 612 | Credit | Suspense account | 612 |