A journal entry for a $210 payment to purchase office supplies was erroneously recorded as a debit to Office Supplies for $550 and a credit to Cash for $210.Which of the following statements correctly states the effect of the error on the trial balance?
A) The sum of the credits will exceed the sum of the debits by $340.
B) The sum of the debits will exceed the sum of the credits by $210.
C) The sum of the debits will exceed the sum of the credits by $340.
D) The sum of the debits will exceed the sum of the credits by $550.

Question

Quizplus · Accepted Answer

The incorrect debit of $550 instead of $210 has caused an overstatement of $340 ($550 - $210) in the debit side of the trial balance. This means that the sum of the debits will exceed the sum of the credits by $340. Therefore, option C is the correct answer.

A Journal Entry for a $210 Payment to Purchase Office