Jane wanted to record a contra entry between a sales ledger account and a purchases ledger account. The credit entry was posted correctly, but the debit entry was entered wrongly in the sales returns account. 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.