Patel Company has an inexperienced accountant. During the first 2 weeks on the job, the accountant made the following errors in journalizing transactions. All entries were posted as made. 1. A payment on account of $750 to a creditor was debited to Accounts Payable $570 and credited to Cash $570.2. The purchase of supplies on account for $560 was debited to Equipment $56 and credited to Accounts Payable $56.3. A $500 withdrawal of cash for N. Patel’s personal use was debited to Salaries and Wages Expense $500 and credited to Cash $500.

Explanation:

The correct entries are as follows:

a. Account payable A/c Dr $180          ($750 - $570)

          To Cash A/c $180

(Being the correct amount is recorded)

b. Supplies A/c Dr $560

       To Equipment A/c  $56

       To Account payable A/c $504     ($560 - $56)

(Being the correct amount is recorded)

c.  N. Patel’s Capital account A/c Dr $500

              To Salaries and wages expense$500

(Being the adjusting entry is recorded)

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.