The Return of Merchandise by a Credit Customer Was Recorded

question 69

Multiple Choice

The return of merchandise by a credit customer was recorded with a debit to Accounts Payable and a credit to Accounts Receivable and the subsidiary ledger. This error will cause:

• A) the net income for the period to be overstated.
• B) the net Sales 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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