Answer: Structured decision
Explanation:
From the question, we are informed that the manager of ABC, Inc decides to order the same number of widgets this year as last year. This implies that the manager has made a structured decision.
Structured decisions occurs when there are already certain processes in place which will be vital in handling of a particular situation. People in organizations use structured decisions when the situations they face are common or reccuring ones. They're repetitive, hence there are necessary processes in place to handle them.
The following trial balance of Blues Traveler Corporation does not balance.
Blues Traveler Corporation Trial Balance April 30, 2020
Debit Credit
Cash $5,912
Accounts Receivable 5,240
Supplies 2,967
Equipment 6,100
Accounts Payable $7,044
Common Stock 8,000
Retained Earnings 2,000
Service Revenue 5,200
Office Expense 4,320 00000
$24,539 $22,244
An examination of the ledger shows these errors.
1. Cash received from a customer on account was recorded (both debit and credit) as $1,380 instead of $1,830.
2. The purchase on account of a computer costing $3,200 was recorded as a debit to Office Expense and a credit to Accounts Payable.
3. Services were performed on account for a client, $2,250, for which Accounts Receivable was debited $2,250 and Service Revenue was credited $225.
4. A payment of $95 for telephone charges was entered as a debit to Office Expense and a debit to Cash.
5. The Service Revenue account was totaled at $5,200 instead of $5,280.
Required:
From this information prepare a corrected trial balance.
Answer:
1. Cash received from a customer on account was recorded (both debit and credit) as $1,380 instead of $1,830.
Dr Cash 450
Cr Accounts receivable 450
2. The purchase on account of a computer costing $3,200 was recorded as a debit to Office Expense and a credit to Accounts Payable.
Dr Equipment 3,200
Cr Office expense 3,200
3. Services were performed on account for a client, $2,250, for which Accounts Receivable was debited $2,250 and Service Revenue was credited $225.
Cr Service revenue 2,025
4. A payment of $95 for telephone charges was entered as a debit to Office Expense and a debit to Cash.
Cr Cash 190
5. The Service Revenue account was totaled at $5,200 instead of $5,280.
Cr Service revenue 80
adjusted trial balancedebit credit
Cash $6,172
Accounts Receivable $4,790
Supplies $2,967
Equipment $9,300
Accounts Payable $7,044
Common Stock $8,000
Retained Earnings $2,000
Service Revenue $7,305
Office Expense $1,120
$24,349 $24,349