Error of Original Entry in Accounting

Steps:

• Recall that an error of original entry occurs when the correct accounts are debited and credited, but with an incorrect amount transcribed from the source document.
• Examine each choice for the transaction: sale of equipment on credit to Janet for $230 should debit Janet's account (receivable) and credit sales account.
• Identify if the amount is wrong but accounts are right (error of original entry) or if accounts are wrong/omitted (other errors).
• Select the choice matching the definition.

Why the correct option is correct:

• Option A records the wrong amount ($20 instead of$230) in the correct accounts (sales and Janet's), fitting the definition of transcribing an incorrect figure while maintaining double-entry balance.

Why the others are wrong:

• B: Uses wrong account (office equipment instead of sales/receivables), an error of commission.
• C: Uses wrong accounts (sales and office equipment), an error of principle or commission.
• D: Complete omission of the transaction, an error of omission.

Final answer: A