Accounting for IGCSE & O level - Accounting Procedures (Section 20 - No. 33)

What is the correct entry when the error where the sales commission amount of £160 was misposted as £400?
Debit the sales amount by £160, and credit the sales commission account for £240.
Debit the sales account for £240, and credit the sales commission amount for £160.
Debit the sales account for £240, and credit the sales commission account for £240.
Debit the sales commission account for £240, and credit the sales account for £240.

Explanation

The sales were understated, and the sales account must be debited to correct the mistake.

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