Home/ Questions/A store accidentally priced an item at $20 instead of $30 and honored the mispricing
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Asked: 2022-04-13T07:06:42+00:00 In:

A store accidentally priced an item at $20 instead of $30 and honored the mispricing

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A store accidentally priced an item at $20 instead of $30 and honored the mispricing. Where should the store attribute the $10 difference? 

SELECT ONLY ONE 

  • Returns and Allowances 

  • Profit (Loss) 

  • Sales 

  • Operating Expenses 

  • Cost of Goods Sold

♦ Relevant knowledge

Sales is among the most popular types of revenue that appears on an income statement.It could be sales on account or cash sale. Most commonly, sales include sales of manufactured or other items and sales of services.

profitssalesstore
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  1. Best Answer

    Solution: The collect answer is Sales.

    The store should attribute the $10 difference to “Sales”.

    This is because the item was accidentally priced lower. The correct price for sales should be $30. The “Sales” will then be responsible for the $10 difference.

    Therefore, the third option is correct.

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