Payment for merchandise sold on credit for $250 subject to 1/10, n/30 was received within the discount period-$247.50 was received. This was recorded with a debit to Sales Discounts for $2.50, a debit to Cash for $247.50, and a credit to Accounts Receivable $250, but no mention was made of the subsidiary ledger account. This error will cause:

Question

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The error in not mentioning the subsidiary ledger account when recording the transaction means that the individual customer's account in the subsidiary ledger will not be updated, leading to a discrepancy between the control account (Accounts Receivable) and the total of the individual accounts in the subsidiary ledger.

Payment for Merchandise Sold on Credit for $250 Subject to 1/10