Jane wished to make a contra entry between a sales ledger account and a purchases ledger account.
The credit entry was made correctly but the debit entry was entered in the sales returns account in error.
What was the effect of this error?
Total purchases ledger balances were overstated.
2 )
Total purchases ledger balances were understated
3 )
Total sales ledger balances were overstated.
4 )
Total sales ledger balances were understated.
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