Correcting wrong-side posting error with double adjustment

Steps:

• Identify error: $100 discount allowed total posted as credit instead of debit to discount allowed account.
• Calculate effect: Misses $100 debit (shortfall on debit side) and adds$100 undue credit (excess on credit side), creating $200 trial balance difference.
• Balance trial balance: Debit suspense $200 to equalize totals.
• Correct entry: Debit suspense $200 and credit discount allowed$200 to reverse undue credit, add proper debit, and close suspense.

Why B is correct:

• Wrong-side posting doubles the imbalance to $200 per accounting convention for trial balance errors, requiring$200 adjustment to both accounts.

Why the others are wrong:

• A and C use $100, suitable only for single-sided omission errors, not wrong-side posting.

Final answer: B