Overcast in Sales Journal Totaling Causes Trial Balance Difference

Steps:

• Sales entry of $700 recorded as$170 understates both debtors (debit) and sales (credit) by $530, leaving trial balance unaffected.
• Correct journal total equals sum of individual entries posted to debtors.
• Debiting suspense $200 means credits exceed debits by$200 in trial balance.
• Thus, sales journal total posted to credit sales was overstated by $200 relative to actual sum.

Why B is correct:

• Overcast by $200 means journal total exceeds actual entries by$200, posting excess credit to sales and creating exact $200 discrepancy resolved by suspense debit.

Why the others are wrong:

• A. Overcast by $130: Incorrect amount; discrepancy is$200, not $130.
• C. Undercast by $130: Wrong direction and amount; undercast reduces credits, causing debits to exceed credits.
• D. Undercast by $200:Wrongdirection;u$200, requiring suspense credit, not debit.

Final answer: B