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2 years ago

A $16 credit to sales was posted as a $160 credit. by what amount is the sales account in error?

Business

1 answer:

shepuryov [24]2 years ago

8 0

The sales account is in error by $144.

<h3>What is a credit to sales?</h3>

Payments for credit sales are made several days or weeks after a product is delivered.
Short-term credit arrangements are recorded as accounts receivable on a company's balance sheet, as opposed to cash payments.
The sales credit journal entry is the journal entry recorded in the company's sales journal when the company sells inventory to a third party on credit.
In this case, the debtor's or account receivable account is debited, and the sales account is credited.

To find the error:

Given - A $16 credit to sales was posted as a $160 credit.
So, 160 - 16 = $144.

Therefore, the sales account is in error by $144.

Know more about credit to sales here:

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