A $15 credit to Sales was posted as a $150 credit.By what amount is the Sales account in error?
A)$150 understated.
B)$135 overstated.
C)$150 overstated.
D)$15 understated.
E)$135 understated.

Question

Quizplus · Accepted Answer

The Sales account is overstated because the credit was larger than intended. The difference between the intended $15 credit and the actual $150 credit is $135, making the account overstated by that amount.

A $15 Credit to Sales Was Posted as a $150