Errors Limited Made Credit Sales of £12,000 Inclusive of VAT

question 6

Multiple Choice

Errors Limited made credit sales of £12,000 inclusive of VAT. The double entry to records these sales was Debit sales £10,000, Debit VAT £2,000, Credit trade receivables £12,000. What is the journal entry required to correct this error?

• A) Debit trade receivables £12,000, Credit sales £10,000, Credit VAT £2,000.
• B) Debit cash £12,000, Credit sales £10,000, Credit VAT £2,000.
• C) Debit trade receivables £24,000, Credit sales £20,000, Credit VAT £4,000.
• D) Debit cash £24,000, Credit sales £20,000, Credit VAT £4,000.

Understand the principles of annuities and their valuation.

Analyze investment problems ignoring income taxes to focus on the principle of time value.

Understand the collective responsibility for IT security within an organization.

Recognize the problems and solutions associated with password security.

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Definitions:

Managers

Individuals responsible for directing and overseeing the operations and strategies of an organization or part of an organization.

Supply Chain Networks

Complex systems of supply chain partners, including suppliers, manufacturers, distributors, and retailers, interconnected to efficiently deliver products and services.

Multiple Metrics

The use of various measurements and indicators to assess performance, manage risk, or guide decision-making in a comprehensive manner.

Evaluation

The systematic determination of a subject's merit, worth and significance, using criteria governed by a set of standards.