A purchase discount was recorded as a credit to the Purchases account and a debit to Accounts Payable.This error will cause:
A) net income to be overstated.
B) net income to be understated.
C) net income to not be affected.
D) total liabilities to be overstated.
Correct Answer:
Verified
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A) the buyer pays
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A)shipping expense.
B)Purchases Returns
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A)free on board.
B)freight or bill.
C)freight
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