Once the draft statement of profit or loss had been prepared, it was found that the purchase of an office computer had been recorded wrongly in the purchases account. What effect will correcting this error have on cost of sales and profit for the year?
- Acost of sales: decrease; profit for the year: decrease
- Bcost of sales: decrease; profit for the year: increase
- Ccost of sales: increase; profit for the year: decrease
- Dcost of sales: increase; profit for the year: increase