Analysis the sales on credit


Response to the following problem:

Merchandise sold on credit was returned for credit and recorded with a debit to Sales and a credit to Accounts Payable. This error will cause:

A) the net income for the period to be overstated

B) the assets to be overstated

C) the net income for the period to be understated

D) the control account to not agree with the subsidiary ledger

Please EXPLAIN your answer!

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Managerial Accounting: Analysis the sales on credit
Reference No:- TGS02083270

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