Assume the total amount of the debit column of a trial balance is greater than t
ID: 2493256 • Letter: A
Question
Assume the total amount of the debit column of a trial balance is greater than the total amount of the credit column. Which of the following could have caused this result?
A)A $500 sale on account was recorded as a $5,000 sale on account. Only the amount was recorded in error.
B)A $250 entry to accounts receivable was recorded as $520. The corresponding credit to sales was recorded correctly. <I chose this
C)A $300 debit that should have been recorded to accounts receivable was recorded in error as a debit to the cash account.
D)A $400 credit that should have been recorded to accounts receivable was recorded in error as a credit to accounts payable.
A)higher than the total amount of assets that will appear on the balance sheet.
B)lower than the total amount of assets that will appear on the balance sheet.
C)equal to the total amount of assets that will appear on the balance sheet.
D)equal to the total amount of expenses and dividends. <<I chose this
A)$900.
B)$500.
C)$300. <<I chose this
The following adjusted trial balance was drawn from the records of the Dakota Company.Explanation / Answer
1)
Correct option is B)A $250 entry to accounts receivable was recorded as $520. The corresponding credit to sales was recorded correctly.
When accounts receivable was recorded as $520 instead of $250, accounts receivable will be overstated but sales will be recorded correctly. Accounts receivable will have debit balance and sales will have credit balances usually. So debit side will be overstated.