Office Supplies (not used for resale) bought on account were returned for credit and recorded with a debit to Accounts Payable and a credit to Merchandise Inventory. This error will cause:

Question

Quizplus · Accepted Answer

The error involves two balance sheet accounts (Accounts Payable and Merchandise Inventory) and does not directly affect any income statement accounts, thus it has no impact on net income or total assets.

Office Supplies (Not Used for Resale) Bought on Account Were