A. Debit sales account and credit debtors account
B. Debit suspense account and credit sales account
C. Debit debtors account and credit suspense account
D. Debit sales account and credit suspense account
Correct Answer: Option D
D. Debit sales account and credit suspense account
Explanation
Remember an overcast is a situation where a customer pays an amount higher and above the real value for goods, due to an error in the total amount calculated in the invoice. The supplier is expected to send a credit note to the customer, noting an error in the invoice and accepting to refund the excess amount to the customer. In the sales daybook, the sales account will be debited (because a sale had occurred) and a suspense account credited.
A suspense account is an account in the books of an organization in which items are entered temporarily before allocation to the correct or final account.
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