A client might overstate December 31 accounts receivable balances by dating and recording January transactions in December.Such entries recorded in which journal are most likely to achieve this end?
A)Cash receipts.
B)Payroll.
C)Purchases.
D)Sales.

Question

Quizplus · Accepted Answer

Sales journal entries are most likely to achieve this end. By recording January transactions as if they occurred in December, the accounts receivable balance on the December 31 balance sheet will be overstated.

A Client Might Overstate December 31 Accounts Receivable Balances by Dating