A journal entry for a $210 payment to purchase office supplies was erroneously recorded as a debit to Office Supplies for $550

Question

3 years ago

12

A journal entry for a $210 payment to purchase office supplies was erroneously recorded as a debit to Office Supplies for $550

and a credit to Cash for $210. 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 $310.

B) The sum of the debits will exceed the sum of the credits by $290.

C) The sum of the debits will exceed the sum of the credits by $310.

D) The sum of the debits will exceed the sum of the credits by $600.

Business

1 answer:

Ludmilka [50] · Answer 1 · 2022-07-15T03:03:53+03:00

Answer:

The sum of the debits will exceed the sum of the credits by $340. (None of the options given).

Explanation:

The right posting on the payment of $210 for the purchase office supplies would be;

Debit office supplies account $210

Credit Cash account $210

However since the debit to office supplies was $550 which is 340 (i.e $550 - $210) more than what the amount to have been posted is, it means that the sum of the debits will exceed the sum of the credits by $340.

A journal entry for a​ $210 payment to purchase office supplies was erroneously recorded as a debit to Office Supplies for​ $550

A journal entry for a $210 payment to purchase office supplies was erroneously recorded as a debit to Office Supplies for $550