account小問題

Assuming $500 is the cost of goods purchased, the original journal entries are : Dr. Trade Debtors Cr. Sales.

Now, A, to correct it by reversing the wrong entries by Dr. Sales Cr. Trade Debtors, being reversal of the wrong entries made.

And, B, to make the correct entries by Dr. Peter's current account Cr. Purchases, being the cost of goods taken by Peter now recorded.