Northstar Services · Mar 3 · Scenario 1

The $450 cash purchase of supplies was posted as a credit to Supplies and a credit to Cash. Note that the trial balance still ties at 6,350 — a reversed posting puts an amount on the wrong side of the right account, so total debits and total credits stay equal. A balanced trial balance is not proof that the books are right.

The ledger balances but Supplies is on the wrong side. Diagnose the error, then post a correcting entry.