Morgan Company purchased supplies inventory for $2,000.Due to an error in posting to the general ledger,the inventory account was debited for only $200 while accounts payable was credited for $2,000.During which phase of the accounting cycle would this error be first discovered?
A) Recording the transaction in the general journal.
B) Preparation of the financial statements.
C) Preparation of the trial balance.
D) Preparation of the income statement.
Correct Answer:
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