Joe Company purchased supplies inventory for $5,000. Due to an error in posting, the inventory account was debited for only $500 when trade payables were credited for $5,000. During which phase of the accounting information cycle, would this error be discovered?

Question

Quizplus · Accepted Answer

The error would likely be discovered during the preparation of the trial balance, as this phase involves listing all account balances to ensure that debits equal credits. The discrepancy between the inventory account and trade payables would be evident here.

Joe Company Purchased Supplies Inventory for $5,000