Accounting for IGCSE & O level - Accounting Procedures (Section 9 - No. 4)

What is the impact on the draft profit if the sales commission was misposted as \$400 where the actual amount was \$140?
Profit is overstated by \$260
Profit is understated by \$260
Profit is overstated by \$300
Profit is understated by \$300

Explanation

Profit is understated by \$260

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