Joe Company purchased supplies inventory for $5,000.Due to an error in posting,the inventory account was debited for only $500 when trade payables was credited for $5,000.During which phase of the accounting information cycle would this error be discovered?

Question

Quizplus · Accepted Answer

The error would be discovered during the preparation of the trial balance, which is the process of verifying that the total debits equal the total credits in the accounting system. The error would be detected when the trial balance shows that the inventory account has a balance of only $500 instead of $5,000, which would indicate that an error occurred in the recording of the transaction.

Joe Company Purchased Supplies Inventory for $5,000