The discovery and correction of errors is important in a ...

[jenna1]

The discovery and correction of errors is important in a computerized system. What kinds of errors might occur inthese systems? What type(s) of errors will be prevented in a computerized system?

Question 2

Angel's Appliances buys four washing machines for its inventory at a price of 400 each. It makes the purchase on credit. It then sells three of the machines for cash at 550 each. Make journal entries to record these transactions.
 
  Then state how much gross profit Angel made.
 
  What will be an ideal response?

[dlook33]

Answer to Question 1

Potential errors:
1 . Failing to record transactions.
2 . Recording a transaction more than once.
3 . Recording a transaction in incorrect accounts.
4 . Entering an incorrect number in both the debit and credit parts of thetransaction.

With a computerized system, you cannot process a transaction unless debitsequal credits. Additionally, you cannot post to the wrong account, as postingoccurs automatically.

Answer to Question 2

Merchandise inventory 1,600
Accounts payable 1,600

Cash 1,650
Sales revenue 1,650

Cost of goods sold 1,200
Merchandise inventory 1,200

Angel made gross profit of 450 (1,650 revenue minus 1,200 cost of goods sold) on the sale of the three washing machines.