To illustrate, let's assume that an invoice for $900 was recorded in the account Advertising Expenses. Upon review, the advertising manager informs the accountant that the amount should have been recorded in the account Marketing Supplies. If the accountant uses a journal entry to move the amount, the entry's description might be: To reclassify $900 from Advertising Expense to Marketing Supplies.
In this illustration, the phrase to reclassify an amount has a gentler tone than the phrase to correct an account coding error.
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