Question

A $23 credit to sales was posted as a $230 credit. By what amount is the sales account in error?

Answer 1

Rs 253 must be debited to his account .

Rs ( 23+230)= 253

A $23 credit to sales was posted as a $230 credit.In this case, the transaction was recorded on the wrong side with wrong amount. Thus Rs 253 must be debited to his account .

Rs ( 23+230)= 253.

• Credit sales refer to a sale in which the amount owed will be paid at a later date. In other words, credit sales are purchases made by customers who do not render payment in full, in cash, at the time of purchase.
• It is common for credit sales to include credit terms. Credit terms are terms that indicate when payment is due for sales that are made on credit, possible discounts, and any applicable interest or late payment fees.

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