Reversal error in seller's cash discount entry

Steps:

• Seller records discount allowed correctly as Debit Discount Allowed (expense), Credit Janet (debtor) to settle reduced payment.
• Reversal error swaps debit and credit sides: Debit Janet (increases debtor balance), Credit Discount Allowed (reduces expense).
• This misrecords the discount, overstating Janet's receivable and understating expense.
• Option C matches this swapped entry.

Why C is correct:

• It reflects the reversal of the standard discount allowed entry (Debit expense, Credit debtor), per double-entry bookkeeping rules where reversal errors invert debits and credits.

Why the others are wrong:

• A: This is the correct entry for discount allowed, not the error.
• B: Identical to C, but does not represent a reversal (assuming duplication in options).
• D: Uses "discount received" (buyer's account), irrelevant to seller's books.

Final answer: C