Nia disposed of equipment with a net book value of $200. The sale proceeds, $250, were entered as a credit in the sales account and as a debit in the cash book. What was the impact of this error on Nia’s gross profit and profit for the year?
- Agross profit overstated $50; profit for the year overstated $50
- Bgross profit overstated $200; profit for the year understated $250
- Cgross profit overstated $250; profit for the year overstated $200
- Dgross profit understated $250; profit for the year understated $200