A journal entry for a $250 payment to purchase office supplies was erroneously recorded as a debit to Office Supplies for $520 and a credit to Cash for $250. Which of the following statements correctly states the effect of the error on the trial balance?

Question

Quizplus · Accepted Answer

The error resulted in an overstatement of the debit balance for Office Supplies by $270 ($520 - $250), and a correct credit balance for Cash of $250. Therefore, the sum of the debits will exceed the sum of the credits by $270.

A Journal Entry for a $250 Payment to Purchase Office