The Collection on Account Within the 1/10, N/30 Discount Period

question 99

Multiple Choice

The collection on account within the 1/10, n/30 discount period was recorded using a 10% discount rather than a 1% discount in both the controlling and subsidiary accounts. This error will cause:

• A) the net income for the period to be understated.
• B) the net income for the period to be overstated.
• C) the control account to not agree with the subsidiary ledger.
• D) the assets to be overstated.

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