A journal entry for a $220 payment to purchase office supplies was erroneously recorded as a debit to Office Supplies for $500 and a credit to Cash for $220. Which of the following statements correctly states the effect of the error on the trial balance?
A) The sum of the credits will exceed the sum of the debits by $280.
B) The sum of the debits will exceed the sum of the credits by $220.
C) The sum of the debits will exceed the sum of the credits by $280.
D) The sum of the debits will exceed the sum of the credits by $500.
Answer: C) The sum of the debits will exceed the sum of the credits by $280.
Business
You might also like to view...
An agency relationship may NOT be terminated by
a. completion of the agreement. b. expiration of the terms of the agreement. c. agreement of the parties. d. someone outside the agency relationship.
Business
A demand side strategy that can produce a better match between service demand and supply is differential pricing
Indicate whether the statement is true or false
Business