Jane intended to record a contra entry between a sales ledger account and a purchases ledger account. The credit side was recorded correctly, but the debit side was posted to the sales returns account by mistake. What effect did this error have?
- ATotal purchases ledger balances were overstated.
- BTotal purchases ledger balances were understated.
- CTotal sales ledger balances were overstated.
- DTotal sales ledger balances were understated.