Office Supplies (not used for resale)bought on account were returned for credit and recorded with a debit to Accounts Payable and a credit to Purchase Returns and Allowances.This error will cause:

Question

Quizplus · Accepted Answer

The error will cause net income to be overstated because the purchase returns and allowances account will be overstated, which will reduce the cost of goods sold and increase net income.

Office Supplies (Not Used for Resale)bought on Account Were Returned