A sale to XYZ for £21,400 has been posted to the customer's account as £24,100. The...

A sale to XYZ for £21,400 has been posted to the customer's account as £24,100. The trial balance failed to balance but the difference has not been placed in a Suspense account. The journal entry to correct this error would require which of the following:

	1.	Debit Suspense account and credit Roy Roger's account with £2,700
	2.	Debit Sales account and credit Roy Roger's account with £2,700
	3.	Credit Roy Roger's account with £2,700 (with no corresponding second entry)
	4.	Debit Roy Roger's account and credit Suspense account with £2,700

Solutions

Expert Solution

Option 3

Since difference is not placed in suspense account, it is not effected. Since customer account is debited more by 2,700, it is credited to his account.

ekkarill92 answered 1 year ago

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