Payment for the merchandise sold on credit for $50 subject to 2/10 n/30 was received within the discount period- $49 was received. This was recorded with a debit to Sales Discounts for $1, a debit to cash for $49, and a credit to Accounts Receivable $50 but no mention was made of the subsidiary ledger account. This error would cause:

A) the net income for the period to be overstated.

B) the net income for the period to be understated.

C) the assets to be overstated.

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

Answer rating: 100% (QA)

Option D is the correct answer As the journal is correct it ... View the full answer