A journal entry for a $250 payment to purchase supplies was erroneously recorded as a debit to Supplies for $520 and a credit to Cash for $250.Which of the following statements about the trial balance is TRUE?

Question

Quizplus · Accepted Answer

Since the journal entry was recorded with a debit to Supplies for $520 instead of $250, there is an overstatement of $270 in the debit column of the trial balance. Therefore, the sum of the debits will exceed the sum of the credits by $270.

A Journal Entry for a $250 Payment to Purchase Supplies