The company miscounted its total credit sales in the last two weeks of the year. The correct amount of credit sales for this period was $310,000. The error was not discovered until the following year when the books for the preceding year were already closed. Make the correcting entry necessary the following year, assuming the facts that follow. Ignore income taxes and assume (perhaps unreasonably) that no errors occurred in recording expenses associated with the sales.
(a) The incorrectly reported amount of credit sales was $260,000, and the error was found when the accounts were collected in cash.
(b) The incorrectly reported amount of credit sales was $260,000, and none of these credit sales had been collected in cash by the time the error was discovered.
(c) The incorrectly reported amount of credit sales was $325,000, and the error was found when the accounts were collected in cash.
(d) The incorrectly reported amount of credit sales was $325,000, and none of these credit sales had been collected in cash by the time the error was discovered.