A journal entry for a $240 payment to purchase office supplies was erroneously recorded as a debit to Office supplies for $600 and a credit to Cash for $240.Which of the following statements correctly states the effect of the error on the trial balance?

Question

Quizplus · Accepted Answer

The debit was recorded as $600 instead of $240, creating an excess debit of $360. The credit was correctly recorded as $240. Therefore, the debits exceed the credits by $360.

A Journal Entry for a $240 Payment to Purchase Office