Correct general journal entry from prior year (closed year)
I am new to this board. I am trying to correct some old transaction errors I discovered during a recent review of our files. Here is an example of the transaction error: 12/4/2003 purchased item from officemax $19.99 and posted correctly to vendor account 12/4/2003 paid for item with credit card and posted payment correctly 1/13/02004 returned item to officemax store and recorded credit for officemax account for $19.99 1/19/2004 posted general journal entry credit office supply expense account $19.99 debit credit card account $19.99 This resulted in a negative balance appearing in the account for this vendor (officemax). I don't know how to fix this at this point since the transaction years are so old. I am concerned about affecting the balance on this credit card (which currently is reconciled with the actual balance of the account). I also am wondering if I make some entries to correct this mistake, that it will affect my Retained Earnings account. Can someone give me help with how to correct this mistake? I found about 9 old transaction errors like this that I would like to clean up. Thanks.