Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

A sales ledger control account had been drawn up. An irrecoverable debt of $40 had been left out, and a discount allowed of $68 was recorded as $86. What overall effect did these mistakes have on the closing balance of the sales ledger control account?

  • A$22 overstated
  • B$22 understated
  • C$58 overstated
  • D$58 understated

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