While in the Process of Posting from the Journal to the Ledger

question 101

Multiple Choice

While in the process of posting from the journal to the ledger, the accountant of X Company failed to post a $50 debit to the Office Supplies account. The effect of this error will be as follows:

• A) The Office Supplies account balance will be overstated.
• B) The trial balance will not balance.
• C) The error will overstate the debits listed in the journal.
• D) The total debits in the trial balance will be larger than the total credits.
• E) This error will not make any difference.

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Definitions:

Net Price Method

Net price method is a pricing strategy that accounts for discounts, rebates, and other incentives upfront, presenting the final price to consumers.

Sales Discounts

Reductions granted by a seller to the buyer for early payment or for meeting other conditions defined in the sales agreement.

Gross Sales

Gross sales refer to the total sales revenue of a company without deducting any sales returns, allowances, or discounts.

Selling Expenses

Costs incurred directly in the selling of goods or services, including advertising, sales staff salaries, and commissions, which are often reported separately from general and administrative expenses.