Question

George and Susan are selling their home. Which of the following charges will appear as a credit to them on the settlement statement?

Answer 1

Answer: Contract sale price

Step-by-step explanation:

The rest of the question with the option is what I sent as a picture

1) the sale of a house can't be recorded as a loan balance, whether credit or debit, only if they are selling the house to pay a loan, which in that scenario will be a debit for George and susan

2) selling a house can be categorized as a contract sale, so the price of the house will definitely be a contract sale price, and since George and Susan are the ones selling and not buying, it will be seen as credit for them

3) the house can't be recorded as unpaid items still due from the sellers because that would be a debit for George and Susan

4) Documents preparation fees wont be a credit for George and Susan, because they will spend money to prepare the documents for the sale of the house, so it won't be as credit in their favor