Providing services to a credit customer was recorded with a debit to Cash and a

label Accounting
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

Providing services to a credit customer was recorded with a debit to Cash and a credit to Retained Earnings. This error would cause __________.

A. the period’s net income to be understated

B. the period’s end liabilities to be understated

Feb 5th, 2015

Providing services to a credit customer was recorded with a debit to Cash and a credit to Retained Earnings. This error would cause __________.

D. the period’s net income to be overstated



This is because the income has not be realised yet since this is a credit customer but cash account has already been  debited.


Please select my answer as the best, if it was helpful you :)

Feb 5th, 2015

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