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When Recording a Sale of Inventory on Credit,the Office Clerk

Question 48

Multiple Choice

When recording a sale of inventory on credit,the office clerk records the debit entry to accounts payable instead of to accounts receivable.This error will result in:


A) an understatement of sales for the period.
B) no effect on profit for the period.
C) an overstatement of liabilities at the end of the period.
D) an understatement of equity at the end of the period.

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