Discount allowed on goods invoiced at N100,000 was calculated at the rate of 20% instead of 10%. The error is corrected by debiting
customer account with N20,000 crediting discount allowed with N20,000
discount allowed with N10,000; crediting customer's account with N10,000
customer's account with N10,000, crediting discount allowed with N10,000
discount allowed with N20,000, crediting cash with N20,000
Explanation
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Discussions (2)
You should credit discount allowed with 10,000 because it was overcasted by 10,000.It usually has a debit balance so we credit to reduce the value.
Correct answer is : C
Please correct me if I am wrong.
You should credit discount allowed with 10,000 because it was overcasted by 10,000.It usually has a debit balance so we credit to reduce the value.
Correct answer is : C
