The return of merchandise was recorded as a debit to Accounts Payable and a credit to Purchases.This error would cause:

Question

Quizplus · Accepted Answer

The error in recording the return of merchandise as a debit to Accounts Payable and a credit to Purchases affects neither the period end assets, liabilities, nor the net income directly. It impacts the accounts payable and purchases accounts, but does not directly understate or overstate assets, liabilities, or net income.

The Return of Merchandise Was Recorded as a Debit to Accounts