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Question - As the full-time bookkeeper, your job is to make any corrections to the general ledger accounts. Each correction needs the reason for the change and the effect on each account, whether it is an increase or decrease.
For the third time this month, a co-worker has recorded a cash receipt twice and wants you to record a correcting entry that will reverse the mistakes. The correcting entry will record a credit to the Cash account and a debit to the Sales account. Your co-worker has offered to buy you dinner for fixing this mistake.
Respond to the following questions:
What should you investigate before making decision about the correcting entry?
What is happening to the Cash account?
Would you accept a dinner offer from your co-worker for fixing the mistake?
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